19th Sep 2024 11:27
(Alliance News) - The UK on Thursday won a fight against an EU order to recover millions of euros from London Stock Exchange Group PLC, ITV PLC, and other large companies, Reuters reported.
The European Commission's order dates back to 2019, before the UK left the EU. It targeted what it considered as illegal exemption in a British tax scheme.
https://www.reuters.com/world/eu-top-court-backs-uk-appeal-against-eu-order-recover-mlns-state-aid-2024-09-19/
The EU's competition enforcer had argued that the UK's Controlled Foreign Company rules - aimed at attracting companies to set up headquarters in the UK and discourage UK companies from moving offshore - gave the companies an illegal advantage.
However, the Court of Justice of the EU sided with the UK, in a final ruling that cannot be appealed.
"The Commission and the General Court erred in law in finding that the rules applicable to CFCs constituted the appropriate reference framework for examining whether a selected advantage had been conferred," the court said in a statement.
"The Court recalls that the Commission ... is in principle required to accept the Member State's interpretation of the relevant provisions of its national law, unless it is able to establish that another interpretation prevails in the case-law or the administrative practice of that Member State", it added.
By Tom Budszus, Alliance News slot editor
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