Paul Farmer and Simon Whitehead (Joseph Hage Aaronson) consider how fiscal state aid issues should 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.
Using state aid rules to challenge fiscal discrimination within the EU has sometimes been described as a ‘nuclear option’ in the sense that success for a competitor in the courts or through Commission proceedings does not result in a tax refund but in a levelling-up so that everyone pays the same (higher) amount of tax. Although this may help to level the playing field it may well have unwelcome consequences for the relevant industry and adverse reputational issues for the competitor.
The ECJ has nevertheless acknowledged that there may be exceptional cases where a national court should grant a competitor repayment of...
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Paul Farmer and Simon Whitehead (Joseph Hage Aaronson) consider how fiscal state aid issues should 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.
Using state aid rules to challenge fiscal discrimination within the EU has sometimes been described as a ‘nuclear option’ in the sense that success for a competitor in the courts or through Commission proceedings does not result in a tax refund but in a levelling-up so that everyone pays the same (higher) amount of tax. Although this may help to level the playing field it may well have unwelcome consequences for the relevant industry and adverse reputational issues for the competitor.
The ECJ has nevertheless acknowledged that there may be exceptional cases where a national court should grant a competitor repayment of...
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:
