- Belgium implemented an exemption for the excess profit of Belgian companies within multinational groups, which the European Commission, in 2016, deemed illegal State aid and ordered its recovery.
- Soudal NV, a beneficiary of this scheme, challenged the Commission’s decision, arguing that multinational group companies are not comparable to stand-alone companies, but the General Court upheld the Commission’s finding of State aid.
- Advocate General Kokott concluded that the Belgian scheme constitutes State aid because it allows multinational group members a choice not to pay corporate tax on part of their profits, a choice not available to stand-alone companies, thus treating similar entities differently and warranting the dismissal of Soudal NV’s appeal.
Source Taxlive
