The EU Court of Justice assesses that an increase of 20% in a tax inseparably linked with a State aid measure have to be notified to the Commission (Carrefour Hypermarchés / Ministre des Finances et des Comptes Publics)

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships with a party or related third party. Article will need e-Competitions Board approval before publication.

Tax Inseparably Linked to State Aid Taxes which are inseparably linked with an aid measure are assessed together with the aid itself. An increase of the budget of an aid scheme by more than 20% constitutes a change of existing aid that must be notified to the Commission for prior authorisation. Introduction Taxpayers may not refuse to pay taxes on the grounds that the tax revenue is used to fund aid that may be illegal or incompatible with the internal market. However, when a tax is “hypothecated” to an aid measure, the Commission is empowered to assess the compatibility of both the aid and the tax, despite the fact that a tax is normally a burden, not an advantage in the meaning of Article 107(1) TFEU. Therefore, when an illegal or incompatible aid measure is exclusively and solely

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Phedon Nicolaides, The EU Court of Justice assesses that an increase of 20% in a tax inseparably linked with a State aid measure have to be notified to the Commission (Carrefour Hypermarchés / Ministre des Finances et des Comptes Publics), 20 September 2018, e-Competitions Bulletin December 2018, Art. N° 88406

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