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TJ topics: state aid

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The European Commission’s recent investigations into alleged fiscal state aid represent a new front on tackling perceived corporate tax avoidance.

The sums at stake are huge – ranging from €20-30m into investigations into rulings by Luxembourg and the Netherlands up to €13 billion for Ireland’s taxation of Apple.

Investigations into Belgian ‘excess profits’ rules and now aspects of the UK’s CFC regime show that the Commission is willing to challenge not only individual rulings, but also member states’ tax regimes.  

For some, this is a much needed move to ensure the fair taxation of multinationals. For others, it is a blunt tool which misunderstands existing case law, and unfairly undermines member states’ taxing rights.

For more details, see recent Tax Journal commentaries including: