Commission Decision (EU) 2019/1352 of 2 April 2019 on the State aid SA.44896 impl... (32019D1352)
Commission Decision (EU) 2019/1352 of 2 April 2019 on the State aid SA.44896 implemented by the United Kingdom concerning CFC Group Financing Exemption (notified under document C(2019) 2526) (Text with EEA relevance.)
- COMMISSION DECISION (EU) 2019/1352
- of 2 April 2019
- on the State aid SA.44896 implemented by the United Kingdom concerning CFC Group Financing Exemption
- (notified under document C(2019) 2526)
- (Only the English version is authentic)
- (Text with EEA relevance)
- 1.
- PROCEDURE
- 2.
- DESCRIPTION OF THE SCHEME
- 2.1.
- The UK Corporate Tax System and the UK CFC rules
- 2.1.1.
- Introduction and Background
- 2.1.2.
- The current UK CFC regime
- 2.1.3.
- CFC charge on Non-Trading Finance Profit
- 2.1.4.
- CFC charge on Trading Finance Profit
- 2.2.
- The contested measure: the Group Financing Exemption
- 2.3.
- Amendments to the UK CFC rules
- 2.4.
- International and EU context
- 2.4.1.
- OECD guidance (BEPS Project)
- 2.4.2.
- The Anti Tax Avoidance Directive
- ‘Article 7
- Controlled foreign company rule
- 2.5.
- Scope of the exemption
- 3.
- GROUNDS FOR INITIATING THE PROCEDURE
- 4.
- COMMENTS FROM THE UNITED KINGDOM
- 4.1.
- Comments on the existence of an advantage
- 4.2.
- Comments on selectivity
- 4.2.1.
- The reference system should be the UK corporate tax regime
- 4.2.2.
- The Group Financing Exemption is not a derogation
- 4.2.3.
- Justification by the basic and guiding principles of the reference system
- 5.
- COMMENTS FROM INTERESTED PARTIES
- 5.1.
- Comments on the choice of the reference system
- 5.2.
- Comments on derogation
- 5.3.
- Comments on the justification
- 6.
- STATE AID ASSESSMENT
- 6.1.
- Existence of aid
- 6.2.
- Existence of a scheme
- 6.3.
- Advantage
- 6.4.
- Selectivity
- 6.4.1.
- Reference System
- 6.4.1.1.
- The general rule under the reference system; establishing the CFC charge
- 6.4.1.2.
- Regulatory technique, as such, does not determine derogation
- 6.4.1.3.
- Methodology and logic of the UK CFC rules
- 6.4.1.4.
- The tools used: the charging provisions
- 6.4.2.
- The Group Financing Exemption is a derogation
- 6.4.2.1.
- The comparability of an exempted CFC according to Chapter 9 of the CFC rules with CFC earning other NTFP
- 6.4.2.2.
- The obligation to respect Treaty freedoms for exempted and non-exempted categories of CFC
- 6.4.3.
- Justification by the nature and overall structure of the tax system
- 6.4.3.1.
- As to the alleged justification by the complexity of historically tracing the origin of the funds
- 6.4.3.2.
- As to the alleged justification by the necessity to comply with the Treaty freedoms
- 6.4.4.
- Conclusion on the existence of a selective advantage
- 6.4.5.
- Beneficiaries of the contested scheme
- 6.5.
- Conclusion on the existence of aid
- 6.6.
- Unlawfulness of the aid
- 6.7.
- Compatibility of the aid
- 7.
- RECOVERY OF STATE AID
- 7.1.
- No legitimate expectations
- 7.2.
- No infringement of other fundamental principles of EU law
- 7.3.
- Methodology for establishing the recovery aid amount
- 8.
- CONCLUSION
- Article 1
- Article 2
- Article 3
- Article 4
- Article 5
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