EU General Court Rejects Appeal in Luxembourg State Aid Case Concerning Financing Company

[...]the case concerns a situation prior to the adoption of more detailed transfer pricing legislation in Luxembourg with effect from 2015 and 2017. According to the GC, an advantage within the meaning of the State aid rules may only be found to exist if the variation between the transfer pricing ac...

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Bibliographic Details
Published in:Journal of International Taxation 2020-01, Vol.31 (1), p.6-7
Main Authors: Kuipers, Jurjan Wouda, Huysmans, Serge, Pouchard, Alexandre J
Format: Article
Language:English
Subjects:
Approximation
Corporate profits
Equity
Finance companies
Financial services
International taxation
Transfer pricing
Online Access:Get full text
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Summary:[...]the case concerns a situation prior to the adoption of more detailed transfer pricing legislation in Luxembourg with effect from 2015 and 2017. According to the GC, an advantage within the meaning of the State aid rules may only be found to exist if the variation between the transfer pricing accepted by a Member State and the "reliable approximation of a market-based outcome" goes beyond the inaccuracies inherent in the transfer pricing methodology used to obtain such approximation. According to the GC, any advantage that would benefit this particular group company necessarily benefited the other group companies in respect of which it charged transfer prices.
ISSN:1049-6378