Conor Quigley QC (Serle Court) argues that the Commission’s approach to state aid seems to misunderstand the whole purpose of tax rulings concerning transfer pricing.
The recent spate of investigations by the European Commission into the supposed selective advantages given to multinational corporations through tax rulings is portrayed by the competition commissioner Margrethe Vestager as a mere continuation of the Commission’s policy of tackling unlawful state aid that distorts competition in the European Union and is prohibited by article 107(1) of the Treaty on the Functioning of the European Union (TFEU). Tax rulings are treated as state measures that may grant selective economic advantages to specific companies; and which should be subject to the supervisory mechanisms of state aid control in the same way as any other distortive subsidy.
To some extent this is correct but the Commission has extended the scope...
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Conor Quigley QC (Serle Court) argues that the Commission’s approach to state aid seems to misunderstand the whole purpose of tax rulings concerning transfer pricing.
The recent spate of investigations by the European Commission into the supposed selective advantages given to multinational corporations through tax rulings is portrayed by the competition commissioner Margrethe Vestager as a mere continuation of the Commission’s policy of tackling unlawful state aid that distorts competition in the European Union and is prohibited by article 107(1) of the Treaty on the Functioning of the European Union (TFEU). Tax rulings are treated as state measures that may grant selective economic advantages to specific companies; and which should be subject to the supervisory mechanisms of state aid control in the same way as any other distortive subsidy.
To some extent this is correct but the Commission has extended the scope...
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