On January 5, 2017 the European Commission published the non-confidential version of its decision from September 19, 2016 to open an in-depth investigation into Luxembourg's tax treatment of GDF Suez (now Engie). Also on January 5, 2017 the Luxembourg Government published a short reaction on its website.
In it’s decision the European Commission states that it has concerns that several tax rulings issued by Luxembourg may have given GDF Suez an unfair advantage over other companies, in breach of EU state aid rules. The European Commission furthermore indicates that it will assess in particular whether Luxembourg tax authorities selectively derogated from provisions of national tax law in tax rulings issued to GDF Suez. According to the Commission these rulings appear to treat the same financial transaction between Luxembourg entities of the GDF Suez Group in an inconsistent way. (As debt at the level of the debtor and as equity at the level of the creditor).
In a press release the Luxembourg Government gave the following reaction to the publication of the non-confidential version of the European Commission’s decision from September 19, 2016:
“The European Commission publishes its opening State aid decision against Luxembourg in the ENGIE case - Luxembourg comments (05.01.2016)
On 19 September 2016, the Commission adopted a decision opening a State aid procedure against the Grand Duchy of Luxembourg in the ENGIE case. This opening decision has today been published. The publication itself is a mere formal step in the procedure. The text published contains no new elements.
Luxembourg has submitted all requested information to the Commission and is fully cooperating with the Commission in the investigation.
Luxembourg is confident that the allegations of State aid in this case are unsubstantiated and that it will be able to convince the Commission in due time that no particular tax treatment or selective advantage has been granted to companies of the ENGIE group in Luxembourg.”
Click here to be forwarded to the non-confidential version of the decision of the European Commission from September 19, 2016 to open an in-depth investigation into Luxembourg's tax treatment of GDF Suez (now Engie) in English.
Click here to be forwarded to the non-confidential version of the decision of the European Commission from September 19, 2016 to open an in-depth investigation into Luxembourg's tax treatment of GDF Suez (now Engie) in French.
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