8 March 2019
On 14 February 2019, the EU General Court annulled the European Commission's State aid decision relating to the Belgian excess profit ruling system. The General Court found that the European Commission was wrong to consider that aid was granted by means of a general "scheme," with all individual tax rulings being merely a technical application of that scheme. The Court held that the European Commission should rather have assessed separately whether each of the individual rulings gave rise to State aid. The judgment is the first relating to the European Commission's enforcement of State aid rules in the area of transfer pricing tax rulings.
The First EU General Court judgment on State Aid through tax rulings – are there wider implications?