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Fiscal Autonomy and State Aid - To what extent can the argument of fiscal autonomy prevent the characterisation of a selective advantage?

Guimarães, Larissa LU (2024) HARN60 20241
Department of Business Law
Abstract
The European Commission’s (EC) interpretation of tax rulings misapplying national
tax law and favouring certain multinational companies and integrated corporate
groups as a selective advantage for State aid purposes poses a challenge to Member
States’s fiscal autonomy. This tension between fiscal autonomy and State aid control
is at the core of recent jurisprudence analysed by the Court of Justice of the European
Union (CJEU). The introduction of this study sets the stage by outlining the
background and purpose, focusing on understanding how Member States can
mitigate the risk of having their tax rulings classified as State aid. The research
questions delve into the criteria for considering tax measures as a selective advantage
... (More)
The European Commission’s (EC) interpretation of tax rulings misapplying national
tax law and favouring certain multinational companies and integrated corporate
groups as a selective advantage for State aid purposes poses a challenge to Member
States’s fiscal autonomy. This tension between fiscal autonomy and State aid control
is at the core of recent jurisprudence analysed by the Court of Justice of the European
Union (CJEU). The introduction of this study sets the stage by outlining the
background and purpose, focusing on understanding how Member States can
mitigate the risk of having their tax rulings classified as State aid. The research
questions delve into the criteria for considering tax measures as a selective advantage
and the role of fiscal autonomy in CJEU’s decisions. Employing legal-dogmatic
methodology and jurisprudential research, this study seeks to identify patterns in
CJEU’s case law evolution concerning fiscal autonomy and State aid control. The
conclusion highlights that fiscal autonomy has been used by the CJEU as an
argument primarily to counter the EC’s reasoning in determining the reference
system, privileging the Member States’ competence to define it based on their fiscal
policy choices, provided that there is no logical inconsistency within the reference
system itself aimed at circumventing State aid rules. While recent cases reveal a
trend towards prioritising Member States’ tax sovereignty, challenges persist in
defining clear criteria for assessing the selective advantage. (Less)
Please use this url to cite or link to this publication:
author
Guimarães, Larissa LU
supervisor
organization
course
HARN60 20241
year
type
H1 - Master's Degree (One Year)
subject
keywords
State aid, fiscal autonomy, tax rulings, case law, CJEU.
language
English
id
9157188
date added to LUP
2024-06-04 10:45:07
date last changed
2024-06-04 10:45:07
@misc{9157188,
  abstract     = {{The European Commission’s (EC) interpretation of tax rulings misapplying national
tax law and favouring certain multinational companies and integrated corporate
groups as a selective advantage for State aid purposes poses a challenge to Member
States’s fiscal autonomy. This tension between fiscal autonomy and State aid control
is at the core of recent jurisprudence analysed by the Court of Justice of the European
Union (CJEU). The introduction of this study sets the stage by outlining the
background and purpose, focusing on understanding how Member States can
mitigate the risk of having their tax rulings classified as State aid. The research
questions delve into the criteria for considering tax measures as a selective advantage
and the role of fiscal autonomy in CJEU’s decisions. Employing legal-dogmatic
methodology and jurisprudential research, this study seeks to identify patterns in
CJEU’s case law evolution concerning fiscal autonomy and State aid control. The
conclusion highlights that fiscal autonomy has been used by the CJEU as an
argument primarily to counter the EC’s reasoning in determining the reference
system, privileging the Member States’ competence to define it based on their fiscal
policy choices, provided that there is no logical inconsistency within the reference
system itself aimed at circumventing State aid rules. While recent cases reveal a
trend towards prioritising Member States’ tax sovereignty, challenges persist in
defining clear criteria for assessing the selective advantage.}},
  author       = {{Guimarães, Larissa}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Fiscal Autonomy and State Aid - To what extent can the argument of fiscal autonomy prevent the characterisation of a selective advantage?}},
  year         = {{2024}},
}