EU Court Upholds Decision Against €700 Million Belgian Tax Scheme for Multinationals
In a significant development, the European Union’s second-highest court has upheld the decision made by an EU competition regulator to reject a Belgian tax scheme valued at €700 million (approximately $748 million) targeting 55 multinational corporations. This decision marks a major victory for the EU’s efforts to crack down on preferential tax arrangements.
The General Court, based in Luxembourg, had previously annulled the decision by Margrethe Vestager in 2019. This decision came after both Belgium and approximately 30 of the companies involved contested the regulator’s initial ruling, as reported by Reuters.
The beneficiaries of the Belgian tax scheme, which dates back to 2005, include prominent multinational entities such as U.S. manufacturer Magnetrol, oil giant BP (BP.L), chemical producer BASF, as well as Wabco, Cellio, Atlas, and Belgacom, which is now known as Proximus.
In 2021, the EU Court of Justice, the highest court in Europe, sided with the EU competition enforcer and referred the case back to the lower tribunal.
In its recent decision, the General Court echoed the Commission’s stance, declaring, “The tax exemptions granted by Belgium to companies within multinational groups constitute an unlawful aid scheme.” The court concurred with the argument that the scheme displayed selectivity, favoring certain companies over others.
A spokesperson for the Belgian Finance Ministry stated that they are currently examining the verdict. The General Court pointed out, “The scheme in question was selective because it was not accessible to companies that had chosen not to invest, centralize their activities, or generate employment in Belgium. Furthermore, the scheme was also selective because it excluded undertakings that were part of smaller groups.”
Belgium retains the option to appeal the decision to the EU Court of Justice.
Source: Reuters
Featured News
Mexico Moves Forward with Reform to Eliminate Key Regulators, Including Competition Watchdog
Aug 23, 2024 by
CPI
DOJ Sues RealPage for Alleged Rent-Fixing Scheme Using AI Software
Aug 23, 2024 by
CPI
Advance Auto Parts to Offload Worldpac for $1.5 Billion
Aug 22, 2024 by
CPI
Bronfman Ups Ante to $6 Billion in Paramount Battle, Skydance Deal at Risk
Aug 22, 2024 by
CPI
Google and California Strike Historic Deal to Fund Newsrooms Amid Controversy
Aug 22, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – State Attorneys General
Aug 22, 2024 by
CPI
CPI Talks… …With Attorney General Phil Weiser
Aug 22, 2024 by
CPI
The Bipartisan Miracle of State Antitrust Enforcement
Aug 22, 2024 by
Gwendolyn J. Lindsay Cooley
Recent Developments in State Antitrust Enforcement: Agriculture and Food Markets
Aug 22, 2024 by
Elizabeth R. Odette
State Attorneys General: Stewards of Consumer Health and Welfare
Aug 22, 2024 by
Brooke Howlett Lovrovich