What exit tax system for European companies?

On 29 November 2011, the Court of Justice of the European Union (CJEU) handed down a highly instructive decision for companies resident in one Member State that are likely to transfer their registered office to another Member State. The Dutch exit tax system, which provides for taxation of the unrealised capital gains of the ‘migrating’ company when the registered office is transferred, was found to be incompatible with freedom of establishment…