The Resource Can selectivity result from the application of non-selective rules? The case of Engie

Can selectivity result from the application of non-selective rules? The case of Engie

Label
Can selectivity result from the application of non-selective rules? The case of Engie
Title
Can selectivity result from the application of non-selective rules? The case of Engie
Creator
Subject
Language
eng
Summary
The purpose of this paper is to analyse the unusual European Commission decision on Engie, contrast it briefly to previous decisions on tax rulings, and consider its merits and whether it is soundly based on principles that emanate from the case law of the Court of Justice of the European Union. It identifies a significant shift in the approach for determining whether a tax measure is selective. The Commission, in its decisions on tax rulings, has found that the selective nature of the rulings stemmed from the fact that they endorsed arrangements whose terms deviated from those that would have been agreed under normal conditions of competition. Unlike its other decisions on tax rulings, the Commission in the Engie case does not examine whether Engie benefitted from treatment that was not available to other companies. Instead, the Commission bases its finding of selectivity on the fact that Engie minimised its tax liability. This is an "outcome-based" approached rather than a "treatment-based" approach which requires comparison between companies in similar situations. Without a benchmark of comparison, an outcome-based approach is meaningless. In addition, the Commission breaks new ground by finding a selective advantage in favour of Engie in the non-enforcement by Luxembourg of anti-abuse rules. The Commission asserts that Luxembourg should have refused to issue the tax ruling
Citation source
In: European State aid law quarterly. - Berlin. - Vol. 17 (2019), no. 1 ; p. 15-28
http://library.link/vocab/creatorName
Nicolaides, P.A
Geographic coverage
  • Europe
  • European Union
Language note
English
http://library.link/vocab/subjectName
  • State aid
  • selectivity
  • advance tax ruling
  • ECJ case law
  • anti-avoidance
Label
Can selectivity result from the application of non-selective rules? The case of Engie
Instantiates
Publication
Label
Can selectivity result from the application of non-selective rules? The case of Engie
Publication

Library Locations

    • IBFD Library AmsterdamBorrow it
      Rietlandpark 301, Amsterdam, 1019 DW, NL
      52.3736660 4.9336932
Processing Feedback ...