The European Court of Justice on 21 May 2015 rendered its ruling in the case Verder LabTec GmbH & Co. KG v. Finanzamt Hilden (Case C‑657/13). The case involved a German limited partnership which transferred IP rights to its Dutch permanent establishment. The transfer triggered an exit tax in Germany on the unrealized gains inherent in the transferred IP rights, which is required to be paid over a 10-year period. The Court was asked to determine whether the German tax on unrealized gains on the transfer of assets to the Dutch PE is compatible with EU rules.  ECJ Advocate General Niilo...