AmFree challenges legality of Pillar 2 in its European lawsuit

Client(s) American Free Enterprise Chamber of Commerce

Jones Day represents the American Free Enterprise Chamber of Commerce ("AmFree") in its lawsuit challenging the Undertaxed Profits Rule ("UTPR") under Pillar 2. Pillar 2, based on the Organization for Economic Co-operation and Development ("OECD") model rules, establishes a 15% global minimum tax on large multinational companies. AmFree, together with four other trade organizations also represented by Jones Day, is contesting the Belgian legislation that implements the UTPR provisions of the EU Pillar 2 Directive. The plaintiffs argue that these provisions violate fundamental rights protected by the Belgian Constitution and primary EU law, including the right to property, the freedom to conduct a business, and the principles of equality, non-discrimination, legality, and fiscal territoriality. The Belgian Constitutional Court has referred the case to the European Court of Justice ("ECJ"), the highest court in the EU. If the ECJ determines that the UTPR infringes on fundamental rights protected by EU law, its decision will be binding on all 27 EU Member States. A ruling from the ECJ is expected by the end of 2026.