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12 February 2016

United States Treasury Secretary expresses concerns regarding State Aid investigations

In a letter to the President of the European Commission (the Commission) dated February 11, United States Treasury Secretary Jack Lew expressed concern that the Commission's use of a "sweeping interpretation" of the EU legal doctrine of state aid, in investigations of tax rulings granted to US companies, creates "disturbing" international tax policy precedents and should be reconsidered. Other Treasury officials have expressed such concerns, but the elevation of the issue to the level of the Treasury Secretary is notable. The letter listed concerns similar to those expressed during December 1, 2015 hearings in both the House Ways and Means Committee and Senate Finance Committee by Robert Stack, Treasury Deputy Assistant Secretary for International Tax Affairs.

A Tax Alert prepared by Ernst & Young Germany, and attached below, provides additional details.

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Document ID: 2016-0313

 

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