In Kingdom of Belgium v European Commission (T-131/16) (14 February 2019) the CJEU found that the Belgian system of advance rulings on excess profits did not constitute state aid (TFEU Art 107(1)).
The European Commission had found that the exemptions granted by Belgium in relation to excess profits by means of advance rulings constituted an aid scheme that was incompatible with the internal market and was in breach of TFEU Art 108(3). Belgium sought annulment of this decision.
Belgium’s first argument was that the Commission had encroached upon Belgium’s exclusive jurisdiction in the field of direct taxation. The CJEU accepted that direct taxation ‘as EU law currently stands’ falls within the competence of the member states but noted that they must exercise that competence consistently with EU law including the state aid rules. The CJEU added that a measure which grants its beneficiaries ‘selective advantages which...
