EU Commissioner Margrethe Vestager takes office and makes a statement on tax State aid investigations
Main content
听
After the approval vote of the European Parliament on 22 October, the new European Commission took up office on 1 November. On November 5, the new Commission under the lead of its President Jean-Claude Juncker held its first meeting in Brussels. The Commission consists of political heavy-weights including 9 former Prime Ministers or Deputy Prime Ministers, 19 former Ministers, 7 returning Commissioners and 8 former Members of the European Parliament, all with solid economic and finance background, and for some of them with extensive foreign relations experience. For more information, see and .
听
听
Margrethe Vestager is the new Commissioner for Competition. For more information on her responsibilities, Project Teams she is a member of, President Juncker鈥檚 Mission Letter to Ms Vestager and European Parliament hearings, see her website .
听
听
On 6 November, Ms Vestager made a statement on tax State aid investigations. The statement 14/1480 provides as follows:
听
听
听
鈥淭ax rulings as such are common practice in Member States.
听
听
However, if in a tax ruling, the tax authorities of a Member State accept that a tax base of a specific company is calculated in a favourable way which does not correspond to market conditions, it may give to the company a more favourable treatment than what other companies would normally get under the country's tax rules, and this could constitute State aid.
听
听
The Commission is already looking at Member States' tax rulings practice that could favour some companies: the Commission has recently opened formal investigation procedures on this area in Ireland, the Netherlands and Luxembourg and has sent information requests to other Member States.
听
听
For Luxembourg the two on-going investigations concern the tax rulings of Amazon and Fiat Finance & Trade (FFT). I cannot comment on on-going investigation cases as we cannot prejudge the outcome of the investigations.
听
The Commission is in close cooperation with the Luxembourg authorities to proceed in a constructive and cooperative manner in this area.
听
We have not seen all the information published yesterday, and we have at this stage not yet formed an opinion about these rulings and a possible formal follow-up by the Commission.
听
听
On a more general note, my services have asked information from Luxembourg and from other countries and we will be vigilant to enforce state aid control in fair and justified manner.鈥�
听
This statement should be seen in light of the recently opened investigations on State aid and tax rulings, see for example:
听
1.听听听听 Commission investigates transfer pricing arrangements on corporate taxation of Amazon in Luxembourg
听
2.听听听听 State aid: Commission extends in-depth investigation into Gibraltar corporate tax regime to include tax rulings practice
听
听
听
听
听
听
听
听
听
听
听
听
听
听
听