On 18 July 2007, the European Court of Justice (ECJ) gave its decision in the case of Oy AA (Case C-231/05, formerly know as the Oy Esab case) regarding the compatibility of the Finnish group contribution regime with the EC fundamental freedoms. Details of the judgment are summarized below. (a) Facts and Issue. The Finnish resident company Oy AA contemplated giving a group contribution to its grand-grand-parent company, AA Ltd., which was resident in the United Kingdom. According to the Finnish Group Contribution Act (GCA), such a contribution is, in domestic situations and under certain conditions, tax deductible for the...