Abuse of law in the European union and the Danish cases: lux facta est?

In the Danish cases, the Court of Justice of the European Union argued that Member States must deny the benefits of EU directives when abusive practices occur, due to a general principle of EU law. They are without a doubt a clear indication of the activism of the Court in preventing the realization of tax benefits associated with fraudulent practices. This article deals with the relation between beneficial ownership and the EU principle of abuse of law in order to analyze the hermeneutic impact of the Danish cases. As emphasized in recent case law of national courts, these controversial cases continue to be the subject to relevant discussion in the international tax arena since the shifting position of the Court leaves businesses in an uncertain position as to when the benefits stemming from the Interest and Royalties Directive and the Parent Subsidiary Directive can be precisely relied upon.