14 June 2016 European Commission publishes final decision finding Luxembourg granted State aid in transfer pricing case The European Commission (the Commission) published its final decision on June 9, in the State aid investigation case relating to Luxembourg, rendered on October 21, 2015. The Commission determined that Luxembourg granted illegal State aid to a Luxembourg resident company, which forms part of a multinational company (MNC) group. The Commission found under the EU State aid rules that Luxembourg granted a selective tax advantage in agreeing to transfer prices that allegedly deviate from market practices. The Commission ordered Luxembourg to recover the alleged advantage from the taxpayer (consisting of the tax benefit that the taxpayer has received since 2012). Luxembourg and the MNC have filed appeals. A Tax Alert prepared by EY's EU Tax Services group, and attached below, provides additional details. Document ID: 2016-1032 |
