How should fiscal state aid issues be addressed where the national tax provisions creating the aid are not based on a simple exemption from a standard rate but arise from differential rate regimes and asymmetric taxes? A case currently before the Swedish courts illustrates that this type of case raises fundamentally different issues and may require a different solution when it comes to recovery. Such cases are not so much exceptional as reflect a different category of cases raising different considerations. The principled answer may therefore in some cases be to reverse the aid by repaying the competitor.
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How should fiscal state aid issues be addressed where the national tax provisions creating the aid are not based on a simple exemption from a standard rate but arise from differential rate regimes and asymmetric taxes? A case currently before the Swedish courts illustrates that this type of case raises fundamentally different issues and may require a different solution when it comes to recovery. Such cases are not so much exceptional as reflect a different category of cases raising different considerations. The principled answer may therefore in some cases be to reverse the aid by repaying the competitor.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
