In its November 23 decision (No. 48125C), published November 30, the Luxembourg Administrative Appeals Court (Cour Administrative) overturned a 2020 judgment of the Luxembourg Administrative Court (Tribunal Administratif) and sided with the taxpayer.

The Luxembourg subsidiary of a fund managed by The Centerbridge Partners Investment Group had petitioned the court to allow deductions of imputed interest on an intragroup interest free loan, which the tax authorities had denied by requalifying the debt as an equity injection.

This case was of significant interest to the market and also featured in various publications. Our own tax team covered it in a previous article: Luxembourg confirms debt treatment of interest-free loan.  

You can read the full story on the PDF below: Tax Notes Today International, December 4, 2023, by Alexander F. Peter.