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 decisive element in whether a tax measure constitutes State aid is the existence of selectivity. On 7 November 2014, the General Court ruled on two almost identical cases that focused on the concept of selectivity: T-399/11, Banco Santander v European Commission and T-219/10, Autogrill Espana v Commission. Banco Santander and Autogrill Espana had applied for annulment of Commission Decisions 2011/282 and 2011/5, respectively. The Decisions concerned the tax amortization of financial goodwill in
The EU General Court holds that tax measures are selective when they constitute an exception or deviation from the normal tax system, and are limited to a pre-defined group of undertakings (Banco Santander)
* 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.
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