INHALT

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