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The European Commission today ordered Ireland to seek up to €13 billion in back taxes from technology company Apple, after finding that a pair of tax agreements that the US tech giant struck with the country’s government breached EU state aid rules.
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The US Department of the Treasury today predicted that the European Commission’s ongoing probes of allegedly illegal state aid will harm tax revenues and cross-border investment – and undermine other international efforts to tackle tax avoidance.
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The head of state aid at Europe’s competition watchdog yesterday said his agency’s concern about member states’ tax rulings centres on how they may diverge from what courts would seem to prescribe, but that his agency is not writing formal guidance for companies. Pallavi Guniganti at GCR Live 8th Annual Brussels Conference: The bigger picture
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The European Court of Justice has dismissed a complaint by Dutch appliance maker Whirlpool against the European Commission’s Directorate-General for Competition, over the agency’s handling of the French government’s 2007 rescue of troubled competitor FagorBrandt.
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European commissioner for competition Margrethe Vestager said today that other countries should adopt the kind of prohibitions on selective government assistance that she has vigorously enforced in the European Union. Pallavi Guniganti in Brussels
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The state aid investigations into EU member states’ tax rulings appear to be breaking new ground, as the union’s antitrust watchdog collaborates with its regulatory counterparts to push through policy reform. Tom Webb examines the investigation and what lies ahead.
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The European Commission has not launched an investigation into Google’s £130 million (€170 million) settlement with the UK’s tax authority, although politicians across Europe claim the tax deal may have broken state aid rules.
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The Netherlands and Luxembourg agreed unlawful tax deals with Starbucks and Fiat Chrysler, handing both companies an unfair competitive advantage at odds with EU state aid rules, the European Commission announced today.
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Overview of state aid rules Rules on EU state aid are chiefly governed by articles 107 and 108 of the Treaty on the Functioning of the European Union (TFEU). The main aim of these rules is to maintain a level playing field for all companies by ensuring that a company will not receive an undue advantage over its competitors through state support. For that purpose, article 107 TFEU contains a general prohibition of state aid and its first paragraph reads:
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The European Commission’s deputy head of state aid said government assistance in the energy sector is endemic and threatens the single market, but incoming guidelines will bring the problem under control. Henry Vane in Brussels