Selectivity in State Aid Law and the Methods for the Allocation of the Corporate Tax Base

Selectivity in State Aid Law and the Methods for the Allocation of the Corporate Tax Base
Title Selectivity in State Aid Law and the Methods for the Allocation of the Corporate Tax Base PDF eBook
Author Jérôme Monsenego
Publisher Kluwer Law International B.V.
Pages 274
Release 2018-06-05
Genre Law
ISBN 9041194142

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High profile cases before the European Commission and the EU courts have intensified scrutiny of the link between State aid law and the taxation of multinational enterprises. Certain decisions have raised questions about fiscal sovereignty and the interpretation of the rules on State aid – in particular the notion of selectivity, which have not been addressed in detail by existing research. The combination of the evolution of the notion of selectivity in State aid law, on the one hand, and the need to adapt the rules for the taxation of the profits of multinational enterprises to the modern economy, on the other hand, makes it necessary to assess whether existing as well as alternative rules for the allocation of the corporate tax base might entail a selective treatment. This book responds to the need of research in the area of State aid law applied to the taxation of the income of multinational enterprises, focusing on the crucial concept of selectivity. The analysis proceeds with a detailed investigation of the theoretical issues that arise when applying the selectivity test in State aid law to three methods for the allocation of the corporate tax base between the members of multinational enterprises: – the arm’s length principle; – transfer pricing safe harbours; and – systems of formula apportionment. This research project is conducted at a theoretical level, without considering national provisions or particular tax treaties. The author suggests an analytical framework on the application of the selectivity test to the three allocation methods. It is concluded that these methods are likely to have certain selective features, with varying possibilities to be justified by the inner logic of a corporate income tax system. It is also demonstrated that selectivity occurs for different reasons, due to the different rationales of the three allocation methods. This book is intended at contributing to the academic literature on the impact of State aid law on the principles for the taxation of the income of multinational enterprises. The outcome of this research project is also relevant for lawmakers who need to reconcile the imperatives of State aid law with the design of rules that match their tax policies, as well as for judges or lawyers who apply the rules on State aid to tax provisions.

Fiscal State Aid Law and Harmful Tax Competition in the Euro

Fiscal State Aid Law and Harmful Tax Competition in the Euro
Title Fiscal State Aid Law and Harmful Tax Competition in the Euro PDF eBook
Author Kyriazis
Publisher Oxford University Press
Pages 289
Release 2023-09-21
Genre Law
ISBN 019887829X

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The intersection between fiscal state aid and taxation has become more topical than ever. Mounting financial crises have left EU Member States scrambling to increase their tax revenue, balance their budgets, and attract capital. Taking advantage of these trends, multinational enterprises have lobbied for favourable tax arrangements, raising questions about the breadth of control the Commission can and should practise. To address egregious instances of favourable taxation, the Commission has tried to simultaneously use soft law and deploy Treaty rules on state aid. Fiscal State Aid Law and Harmful Tax Competition in the EU examines the use of state aid rules against national tax measures. Kyriazis's book presents a targeted investigation of these measures in two parts. The first part addresses Commission decisions and ECJ judgments of the early 2000s, which the author calls the "first wave". The second part consists of all the recent Commission decisions and investigations into tax schemes and individual tax rulings, most notably the Apple, Fiat, Starbucks, and Amazon investigations, which Kyriazis labels the "second wave". The characteristics and common threads of each wave are set out, their similarities and differences dissected, and their nexus to the EU's fight against harmful tax competition explored. Containing a thorough analysis of the legal concept of fiscal state aid under Article 107(1) of the Treaty on the Functioning of the European Union, this book will be of interest to scholars of European and International Tax law and practitioners working in the field of European competition law.

The Role of State Aid in the European Fiscal Integration

The Role of State Aid in the European Fiscal Integration
Title The Role of State Aid in the European Fiscal Integration PDF eBook
Author Rossella Miceli
Publisher Springer Nature
Pages 268
Release 2022-01-03
Genre Law
ISBN 3030887359

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This book analyzes the issue of European fiscal State aid in order to provide insights into the related evolution prospects and legal problems. State aid has assumed a central position in the field of taxation, becoming the most important instrument of European legal integration, especially in the area of direct taxes. This is the result of major regulatory and interpretative development, which has altered the initial European and national balances in the face of globalization and the problems of the new economy. In this context, the scope and objectives of State aid have progressively broadened, encompassing a significant level of both positive and negative integration of European national tax systems.

Research Handbook on European State Aid Law

Research Handbook on European State Aid Law
Title Research Handbook on European State Aid Law PDF eBook
Author Leigh Hancher
Publisher Edward Elgar Publishing
Pages 384
Release 2021-01-29
Genre Law
ISBN 1789909252

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This revised and updated Research Handbook on European State Aid Law brings together established academics and practitioners to provide a wide-ranging coverage of the field. Incorporating political science, economics and the law in its analysis, it provides a strong overview of the salient issues in State aid law and policy.

New Perspectives on Fiscal State Aid

New Perspectives on Fiscal State Aid
Title New Perspectives on Fiscal State Aid PDF eBook
Author Carla De Pietro
Publisher Kluwer Law International B.V.
Pages 337
Release 2019-08-14
Genre Law
ISBN 9403514248

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New Perspectives on Fiscal State Aid Legitimacy and Effectiveness of Fiscal State Aid Control Edited by Carla De Pietro Based on a project co-funded by the European Commission, this book focuses on fiscal state aid – an increasingly important topic – with a number of high-profile cases ongoing and with serious implications for sustainable growth and the future of the internal market. The project, conducted by four universities, consisted in seminars, workshops and a final conference aimed at training national tax judges from the four different countries involved (Austria, Belgium, Italy and the Netherlands), with discussion and reflection by international academics and other tax professionals who participated as speakers and/or discussants. This book presents an in-depth analysis of the topics the project dealt with, taking a giant step towards defining the connection between effective state aid control, its legitimacy and a desirable functioning of the internal market for the twenty-first century. The core elements of this fundamental analysis include the following: selectivity as applied in the case law of the Court of Justice; whether and to what extent state aid law limits European Union (EU) Member States in designing anti-tax avoidance measures; protection of legitimate expectations; to what extent national judges are required to apply state aid rules ex officio; powers of national judges in connection with the national obligation of guaranteeing an immediate and effective recovery on the basis of an order issued by the European Commission; and connection between legitimacy of state aid law and effectiveness of state aid control. The book includes a thorough investigation of the notion of fiscal state aid, also by focusing on the most recent decisions of the European Commission concerning mismatches. Representing, as it does, an important and concrete contribution to the intense debate about the interpretation of the notion of fiscal state aid, with different normative views about the goals and functions of control, this book will stimulate solutions in terms of legitimacy of fiscal state aid control that also take into consideration the most desirable functioning of the internal market. It will be welcomed not only by academics in taxation and EU law but also by national tax judges, tax authorities and practitioners.

Transfer Pricing Developments Around the World 2019

Transfer Pricing Developments Around the World 2019
Title Transfer Pricing Developments Around the World 2019 PDF eBook
Author Michael Lang
Publisher Kluwer Law International B.V.
Pages 290
Release 2019-08-09
Genre Law
ISBN 9403512830

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Intensive work on transfer pricing, one of the most relevant and challenging topics in the international tax environment, continues to increase worldwide at every level of government and international policy with far-reaching impact on countries’ legislations, administrative guidelines and jurisprudence. This book presents an in-depth, issue-by-issue analysis of the current state of developments along with suggestions for future solutions to the problems raised. Emerging from the research conducted by the WU Transfer Pricing Center at the Institute for Austrian and International Tax Law at WU (Vienna University of Economics and Business), this book offers eight topic-based papers prepared by international experts on transfer pricing. Greatly helping to define recent transfer pricing issues around the world, this book encompasses the following topics: Global Transfer Pricing Developments; Transfer Pricing Developments in the European Union; Transfer Pricing Developments in the United States; Transfer Pricing Developments in Developing Countries and Emerging Economies; Recent Developments on Transfer Pricing and Intra-Group Services; Recent Developments on Transfer Pricing and Intra-Group Financing; Recent Developments on the Nexus Rules to Tax Business Profits at Source; and Recent Developments on Attribution of Profits to Digital Permanent Establishments. The intense work of international organizations such as the Organisation for Economic Co-operation and Development, United Nations and other international organizations as well as the intense work of the European Union is thoroughly analyzed in this book. The detailed analysis will be of immeasurable value to the various players including international organizations, the business community and advisory firms, corporate CEOs and CFOs, and government officials as well as to tax lawyers, in-house counsel and academics in facilitating efficient dialogue and a coordinated approach to transfer pricing in the future.

State Aid and Tax Law

State Aid and Tax Law
Title State Aid and Tax Law PDF eBook
Author Alexander Rust
Publisher Kluwer Law International B.V.
Pages 232
Release 2012-12-01
Genre Law
ISBN 9041146253

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This book provides clear guidance on what constitutes State Aid in the area of tax law. It clearly explains the situations in which beneficial tax provisions for the taxpayer – e.g., lower tax rates for certain industries or for certain economic zones, advantageous depreciation rules, or exemptions – can be declared void by the European Commission. The difficult controlling concept of ‘selectivity’ of an aid is dealt with extensively. Drawing on familiarity with the practice of the Commission, as well as the jurisprudence of the General Court and of the Court of Justice, thirteen knowledgeable contributors present valuable arguments in case the Commission requires the repayment of advantages received. Among the topics and issues covered are the following: how unregulated tax incentive competition between States leads to a ‘win’ by one State and a ‘loss’ by another; the legal uncertainty attached to the Commission’s decision following notification of a proposed tax incentive; the role of the Commission’s Code of Conduct; calculating the amount of recovery of illegal State Aid; application of State Aid rules in the area of indirect taxation (e.g., VAT and excise duties); investment fund regimes; subnational regional aid; ‘patent box’ regimes; foreign source income; and taxpayers’ exclusion from infringement proceedings and subsequent appeals. Complete with case studies and analyses of the latest case law on selectivity, this invaluable resource will be welcomed by practitioners who, although they may be well-versed in tax law, are sure to benefit greatly from the authors’ expert guidance on State Aid provisions and the rules on harmful tax competition.