Tax & Legal

Advocate General Kokott is of the view that the Commission erred in deciding that Luxembourg had granted unauthorized state aid to Amazon in the form of tax advantages.

The European Court of Justice in its judgment on two joined cases held today that the General Court wrongly upheld the Commission’s decision on State aid as regards the “tax rulings” issued by the Luxembourg tax authorities. The General Court erred when confirming the reference framework used by the Commission to apply the arm’s length principle to integrated companies in Luxembourg but failing to consider the specific rules implementing that principle in that Member State.

In a Polish case, the ECJ has commented on the distinction between tax exemptions and state aid and specified under what circumstances tax exemptions may be prohibited by EU law.

In her Opinion the Advocate General considers that the European Commission erred in finding that Luxembourg had granted unlawful State aid to the Engie group in the form of tax advantages (tax rulings). The AG proposes that the ECJ should uphold the appeals and, consequently, set aside the judgment of the General Court and annul the decision of the EU Commission.

On 21 July 2021 Luxembourg has filed an appeal against the judgment of the General Court of 12 May 2021 in the joined cases T-516/18 and T-525/18 (Luxembourg and Engie Global LNG Holding and Others / Commission) regarding certain tax rulings concerning the transfer of business activities within the Engie group.

Back in June 2017 we informed you of the Supreme Tax Court's referral to the European Court of Justice of the question as to whether the RETT exemption on conversions(Section 6a Real Estate Transfer Tax Act) constitutes illicit State Aid.

On 30 May 2017 the Supreme Tax Court decided to refer to the European Court of Justice (ECJ) the question of whether the real estate transfer tax (RETT) exemption on conversions - in Section 6a Real Estate Transfer Tax Act - constitutes illegal state aid.