The EU Commission Executive Vice-President Vestager announces new State aid investigations into multinationals’ tax rulings following a recent decision of the Court of Justice (Fiat Chrysler)

The European Competition Commissioner, Margrethe Vestager, announced on 20 March 2023 that new State aid investigations into “aggressive tax planning” practices of multinationals can be expected. This follows an in-depth inquiry into tax ruling practices in European Union (“EU”) Member States for the period 2014-2018. While the European Courts have annulled several European Commission (“Commission”) decisions that ordered companies to repay to the State advantages gained from tax rulings, they have decided that State aid law also applies to tax measures, even if direct taxation is a prerogative of Member States. However, as this article sets out, the European Courts have limited the Commission’s review. In particular, by its judgment of 8 November 2022 in the Fiat Chrysler case