Moving to tax havens should become easier – ECJ’s decision about Polbud

The European Court of Justice has decided that member states cannot demand that a company be first liquidated if it wants to move its statutory seat to another country. The decision was in relation to the dispute between Polish construction firm Polbud and Polish courts. In 2013 Polbud moved its statutory seat to Luxembourg, however its operational seat and all its business was still conducted in Poland. The ECJ judges stated that demanding liquidation is a restriction on the freedom of economic activity. The ECJ’s decision should make transferring company seats to tax havens easier.

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