Previous issue Next issue

Tax rulings

State Aid

The EU Commission opens an in-depth investigation into statutory rules that exempt certain financing income earned by foreign subsidiaries (United Kingdom)
Skadden, Arps, Slate, Meagher & Flom (Brussels)
,
Skadden, Arps, Slate, Meagher & Flom (London)
,
Skadden, Arps, Slate, Meagher & Flom (Brussels)
On 26 October 2017, the European Commission (the Commission) opened an in-depth investigation into UK statutory rules that exempt certain financing income earned by foreign subsidiaries of UK corporate taxpayers from UK tax. The Commission’s investigation will focus on whether the UK Controlled (...)

The EU Commission concludes that Luxembourg has granted undue tax benefits to an electronic commerce company (Amazon)
European Commission - DG COMP
State aid: Commission finds Luxembourg gave illegal tax benefits to Amazon worth around €250 million* The European Commission has concluded that Luxembourg granted undue tax benefits to Amazon of around €250 million. This is illegal under EU State aid rules because it allowed Amazon to pay (...)

The EU Commission confirms that Ireland granted State Aid to a company (Apple)
Simmons & Simmons (Luxembourg)
,
Simmons & Simmons (Luxembourg)
On 30 August 2016, the EU commission confirmed that in their view, Ireland granted illegal State Aid to Apple. Such State Aid is allegedly granted in the form of a selective tax treatment. The decision is the latest in the EU Commission’s moves to use State Aid principles in a direct tax (...)

The EU Commission publishes its largest-ever negative State aid decision regarding tax arrangements, requiring Ireland to recover €13bn of aid (Apple)
Oxera (Oxford)
,
Oxera (Brussels)
I. Introduction 1. On 30 August 2016, the European Commission announced its largest-ever negative State aid decision requiring Ireland to recover €13bn of aid (plus interest) from Apple as a result of its tax rulings with Ireland . In the year leading up to this announcement, the Commission (...)

The EU Commission opens an in-depth investigation concerning undue tax benefits potentially granted by Luxembourg to an energy provider (Engie)
European Commission - DG COMP
State aid: Commission opens in-depth investigation into Luxembourg’s tax treatment of GDF Suez (now Engie)* The European Commission has opened an in-depth investigation into Luxembourg’s tax treatment of the GDF Suez group (now Engie). The Commission has concerns that several tax rulings issued (...)

The EU Commission concludes Ireland granted undue tax benefits to a multinational technology company (Apple)
European Commission - DG COMP
State aid: Ireland gave illegal tax benefits to Apple worth up to €13 billion* The European Commission has concluded that Ireland granted undue tax benefits of up to €13 billion to Apple. This is illegal under EU state aid rules, because it allowed Apple to pay substantially less tax than other (...)

The EU Commission declares Irish tax rulings favouring an undertaking to be contrary to State aid provisions (Apple)
Van Bael & Bellis (Brussels)
On 30 August 2016, the European Commission announced its decision finding that Ireland has granted selective tax advantages to Apple. According to the press release of the Commission, the two tax rulings at stake issued by Ireland to Apple substantially and artificially lowered the tax paid by (...)

The EU Commission finds that Ireland granted undue tax benefits to a US leading multinational technology company (Apple)
European Commission - DG COMP
State aid: Ireland gave illegal tax benefits to Apple worth up to €13 billion* The European Commission has concluded that Ireland granted undue tax benefits of up to €13 billion to Apple. This is illegal under EU state aid rules, because it allowed Apple to pay substantially less tax than other (...)

The European Commission publishes Working Paper on state aid and tax rulings
Van Bael & Bellis (Brussels)
On 3 June 2016, the European Commission published a working paper on state aid and tax rulings (the “Working Paper”). The Working Paper brings together relevant findings of the Commission in the politically sensitive area of state aid and corporate taxation. In particular, the Working Paper (...)

The EU Commission opens a formal investigation concerning undue tax benefits potentially granted by Luxembourg to a fast food restaurant chain (McDonald’s)
European Commission - DG COMP
State aid: Commission opens formal investigation into Luxembourg’s tax treatment of McDonald’s* The Commission has opened a formal probe into Luxembourg’s tax treatment of McDonald’s.Its preliminary view is that a tax ruling granted by Luxembourg may have granted McDonald’s an advantageous tax (...)

The EU Commission concludes that Luxembourg and the Netherlands granted tax advantages to two companies (Fiat and Starbucks)
European Commission - DG COMP
Commission decides selective tax advantages for Fiat in Luxembourg and Starbucks in the Netherlands are illegal under EU state aid rules* The European Commission has decided that Luxembourg and the Netherlands have granted selective tax advantages to Fiat Finance and Trade and Starbucks, (...)

The EU Commission orders claw back in the first decisions to emerge in its crackdown on corporate tax avoidance (Fiat / Starbucks)
Simmons & Simmons (Brussels)
On 21 October 2015, the European Commission adopted its first two decisions on the compatibility of tax rulings with EU State aid rules. The first case related to a Dutch tax ruling granted to Starbucks. The second case involved Fiat’s finance company, based in Luxembourg. In both cases, the (...)

The EU General Court holds that tax measures are selective when they constitute an exception or deviation from the normal tax system and that this exception or deviation is limited only to certain undertakings (Banco Santander)
College of Europe (Bruges)
A Surprising Interpretation of the Concept of Selectivity* Tax measures are selective when they constitute an exception or deviation from the normal or common system of taxation. In addition, the exception must be open only to a pre-defined category of undertakings. Introduction Often, the (...)

The European Commission holds that infrastructure projects which are economic in nature are subject to State aid scrutiny regardless of their importance (Øresund Fixed Link)
College of Europe (Bruges)
An Important Project of Common European Interest* Infrastructure projects which are economic in nature are subject to State aid scrutiny regardless of their importance. However, public funding of transport networks which are open to all users does not constitute State aid. Introduction State (...)

The EU Commission open an investigation concerning transfer pricing arrangements on corporate taxation of an online store in Luxembourg (Amazon)
European Commission - DG COMP
State aid: Commission investigates transfer pricing arrangements on corporate taxation of Amazon in Luxembourg* The European Commission has opened an in-depth investigation to examine whether the decision by Luxembourg’s tax authorities with regard to the corporate income tax to be paid by (...)

The European Commission continues to scrutinize tax rulings to check their compliance with the arm-length principle and State Aid rules (Amazon)
University of Oxford
Luxembourg, Amazon, and the State aid connection* The Commission’s opening decision: What should we make of Amazon’s ‘advance pricing agreement’ (APA) and its alleged (non-) compliance with the ‘arm’s length principle’ (ALP)? In early October 2014, the European Commission notified Luxembourg of its (...)

The European Commission explains once again that tax rulings in case of advance pricing agreements can constitute State aids (FFT)
University of Oxford
Driving in the wrong direction? The opening decision in Fiat* What are we to make of the Commission’s decision to open an in-depth investigation into the tax treatment of Fiat Finance and Trade (FFT) by Luxembourg? In late September 2014, the Commission published its decision to open an (...)

The European Commission applies a "private tax-payer test" for State aid (Apple APA)
University of Bristol - Law School
A ’private tax-payer test’ for State aid? ... or how the Commission is not getting it (about the Apple APA case)* Thanks to @Detig’s twitter encouragement, I have finally set out to read the recently released 11 June 2014 Decision of the European Commission SA.38373 in the case of alleged Irish (...)

The European Commission investigates national tax rulings on transfer pricing
White & Case (Brussels)
,
White & Case (Brussels)
,
White & Case (London)
The European Commission (“EC”) has long sought to eliminate so-called harmful tax competition, which it sees as undermining the integrity of the internal market, fair competition and the fiscal sustainability of the Member States. Although the EU Member States remain sovereign in this area, over (...)

The Italian Supreme Court refers a question for preliminary ruling to the ECJ to ask whether Italian tax relief measures for cooperative societies constitute State aid within Art. 87 EC (Famiglia Coop Agricola Carli Albino)
EUJUS Law Firm (Rome)
Factual background Under Italian tax rules, cooperative societies benefit from significant fiscal reliefs. The ability to benefit from the reliefs is dependant upon the not-for-profit nature of the activity performed by the cooperative. Similarly to tax purposes, the not-for-profit nature is (...)

The European Commission rules that preferential tax regimes for financial holdings granted by Luxembourg are incompatible with State aid rules ("Milliardaires" Holdings and Holdings of 1929)
European Commission - Legal Service
"State aid and preferential tax regimes for financial holdings - The Luxembourg’s Exempt 1929 Holdings case"* Taxation and the competitive structure of financial services markets ong> “Traditional” financing has changed considerably in the past century and traditional lending institutions (banks) (...)

The Italian Supreme Court holds that a cooperative societies’ tax break should be qualified as a State aid because it involves a lower tax income into the public budget and refers the case to the ECJ for a preliminary ruling (Maricoltori Alto Adriatico)
EUJUS Law Firm (Rome)
Factual background Under Italian tax rules, cooperative societies benefit from significant tax exemptions. After an inspection of the Italian tax policy, the local tax office of Monfalcone decided that Mr. F.M.’s individual income tax return, for the years 1984, 1985 and 1986, was inaccurate. (...)

The European Commission issues a negative decision on an Italian State aid scheme providing business tax incentives in favor of newly listed companies on regulated stock exchanges in the EU
European Commission - Legal Service
"The Italian tax premium in favour of newly listed companies and the notion of selectivity relative to direct business taxation"* Background A recent negative decision by the Commission of 16 March 2005 on an Italian State aid scheme providing generous business tax incentives in favour of (...)

The EU Court of First Instance rules that fiscal aid granted by Spanish region to a company active in the manufacturing of tin capsules, constitutes illegal State aid (Diputación Foral de Alava v. Commission)
European Parliament (Brussels)
,
London School of Economics
"Business taxation distorting the Common market – An important ruling on State aid by the Court of First Instance"* 1. Introduction The question of state aids in form of tax measures has never been as pressing as in the present. After the completion of the single market and the liberalisation (...)

The European Commission decides that tax measures for banks introduced by an Italian law are incompatible with State aid rules and orders their recovery
European Commission - DG MOVE
"The restructuring of the Italian banking sector: State aid cannot assist mergers"* Introduction On 11 December 2001, the European Commission decided that the tax measures for banks introduced by Italian Law n° 461/98 of 23 December 1998 and the related Legislative Decree n° 153/99 of 17 May (...)

All issues

  • Latest News issue 
  • All News issues
  • Latest Special issue 
  • All Special issues