Laura Elizabeth John examines the five steps set out in the BAA litigation to determine whether a specific tax regime is compatible with European State aid rules
The British Aggregates Association (BAA) submitted a complaint to the European Commission (the Commission) that the UK levy on aggregates breached article 107(1) of the Treaty on the Functioning of the European Union (article 107) (formerly article 87 of the EC Treaty). This states that:
‘... any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall insofar as it affects trade between Member States be incompatible with the internal market.’
The levy applies whenever a quantity of...
