Judgment Reviews Law at Luxembourg
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Luxembourg's judicial landscape in 2024 has been marked by significant rulings from its Constitutional Court, Administrative Court, and Court of Appeal. These decisions have addressed critical issues related to tax law, administrative procedures, and fundamental rights, reflecting the judiciary's active role in upholding constitutional principles.
⚖️ Key Judicial Decisions in 2024
1. Constitutional Court: Minimum Net Wealth Tax Regime
On 10 November 2023, the Luxembourg Constitutional Court ruled that part of the minimum net wealth tax regime applicable to collective entities was contrary to the constitutional principle of equal treatment. The Court found that the threshold of EUR 350,000 lacked a rational basis, leading to a partial annulment of the tax regime. The Court applied both the pre- and post-reform versions of Article 10bis of the Constitution, highlighting the importance of constitutional consistency in tax legislation.
2. Administrative Court: Interest-Free Loan Classification
On 23 November 2023, the Luxembourg Administrative Court clarified the tax treatment of an interest-free loan (IFL) granted by a Luxembourg company to its wholly owned subsidiary. The Court overturned the Administrative Tribunal's decision, which had classified the IFL as a hidden capital contribution. The Court's ruling provides much-needed legal certainty for the widespread use of IFLs in financing Luxembourg companies.
3. Administrative Court: Statelessness Case
In a judgment dated 21 November 2024, the Luxembourg Administrative Court addressed a case involving a child applicant's right to family reunification. The Court found that the Ministry of Immigration and Asylum had disproportionately infringed the applicant's right to respect for private and family life, violating Article 8 of the European Convention on Human Rights and the best interests of the child as protected by EU law.
4. Administrative Court: Article 22bis ITL Application
On 21 November 2024, the Administrative Court released a case law clarifying important aspects concerning the conditions for applying Article 22bis of the Luxembourg income tax law. The Court discussed the assessment of the estimated realisation value from the perspectives of both the contributor and the beneficiary when the conditions for a contribution at book value are not met.
5. Court of Appeal: Time Limits and Appeal Admissibility
On 27 June 2024, the Luxembourg Court of Appeal clarified the rules for calculating time limits for filing an appeal against a final judgment. The Court applied the "double date" principle included in Article 13 of EU Regulation 2020/1784, determining that the starting point for time limits varies depending on the status of the person concerned. The Court also ruled on the admissibility of an appeal against an interlocutory judgment filed simultaneously with the final judgment.
Luxembourg's judiciary continues to play a pivotal role in interpreting and upholding constitutional values, particularly concerning tax law, administrative procedures, and fundamental rights The 2024 rulings reflect a commitment to aligning national laws with constitutional principles and European standards These decisions contribute to the ongoing development of Luxembourg's legal landscape, ensuring that it remains responsive to evolving societal needs and international norms
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