UK recovers €100m in illegal tax aid for Gibraltar to avoid TEU

Madrid, October 6 (European press) –

The European Commission reported this Wednesday that the United Kingdom has been notified of the recovery of a total of €100 million in illegal tax aid given to multinational companies in Gibraltar that they should have complied with in 2019 and which Brussels decided because it had previously delayed the case. Court of Justice of the European Union.

In March of this year, the Community Executive announced its intent to indict the UK before European justice for its failure to comply with a tax benefit refund order, since by that date only two of the affected multinationals had returned their part, although the date The legal final to do so is April 2019.

By then, Gibraltar authorities still had to recover about 80 million euros from Mead Johnson Nutrition, which benefited from a tax agreement, and from Fossil, which gained access to an illegal aid scheme, according to Brussels.

Finally, as London reported to Brussels, the Gibraltar authorities finalized the 100 million refund on July 14, now allowing the community foundation to overturn the decision to go to the EU court.

The case dates back to 2013, when an investigation was opened against the corporate tax system started by Gibraltar three years ago. Brussels concluded in December 2018 that the exemptions from interest and royalties and the five tax agreements or ‘tax provisions’ that Gibraltar had closed with many businesses were illegal, so it ordered a refund of the awarded aid.

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