Anti-Avoidance without Overtaxation: Mandatory Foreign Tax Credit under CFC Rules (C-524/23)

On 26 February 2026, the Court of Justice of the European Union held that the (old) Belgian CFC rules were the result of an incomplete transposition of the ATAD) The Belgian legislature had refused to grant a tax credit under the Model B rules for the foreign taxes paid by a CFC (as required by article 8(7) of the ATAD), in the interest of better protection of the Belgian tax base, but the CJEU considered the corresponding (risk of) double taxation to be disproportionate.