27In those circumstances, such a difference in the tax treatment of branches based on the place where their parent companies with which transactions on non-arm’s-length terms have been entered into have their registered office is liable to constitute a restriction on freedom of establishment, within the meaning of Article 49 TFEU. The parent company might thereby be deterred from acquiring, creating or maintaining a branch in a Member State other than its Member State of residence because of the tax burden imposed, in a cross-border situation, on transactions entered into on non-arm’s-length terms (see, to that effect, judgment of 31 May 2018, Hornbach-Baumarkt, C‑382/16, EU:C:2018:366, paragraph 35).
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