The EU Court of Justice annuls the Commission’s expansive interpretation of State aid in a Luxembourg tax rulings case (Fiat Chrysler)

On November 8, 2022, the Court of Justice of the European Union (CJEU), overturning the first instance EU General Court (General Court), annulled the European Commission’s (EC’s) decision that a Luxembourg tax ruling on Fiat’s intragroup financing transactions “did not reflect economic reality” and therefore amounted to unlawful state aid. [1] The CJEU, ruling in Grand Chamber composition, rejected the EC’s reliance on an “abstract” interpretation of the arm’s-length principle based on Organisation for Economic Co-operation and Development (OECD) principles. The CJEU concluded that this could not be relied upon in determining whether a measure conferred a “selective” advantage on Fiat (that is to say an advantage that was not generally available to all companies): Because EU member states have

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Authors

  • Skadden, Arps, Slate, Meagher & Flom (London)
  • Skadden, Arps, Slate, Meagher & Flom (Brussels)
  • Skadden, Arps, Slate, Meagher & Flom (Chicago)
  • Skadden, Arps, Slate, Meagher & Flom (London)
  • Skadden, Arps, Slate, Meagher & Flom (Brussels)
  • Skadden, Arps, Slate, Meagher & Flom (Washington)
  • Skadden, Arps, Slate, Meagher & Flom (Brussels)
  • Skadden, Arps, Slate, Meagher & Flom (Brussels)

Quotation

James Anderson, Bill Batchelor, Nathaniel Carden, Alex Jupp, Giorgio Motta, Paul W. Oosterhuis, Niels Baeten, Tom R. Selwyn Sharpe, The EU Court of Justice annuls the Commission’s expansive interpretation of State aid in a Luxembourg tax rulings case (Fiat Chrysler), 8 November 2022, e-Competitions November 2022, Art. N° 109692

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