Europe

European Commission sues Britain over tax exemption in Gibraltar

The European Commission filed a lawsuit with the Court of Justice due to the fact that the UK did not return in full the illegal state aid in the amount of about 100 million euros, provided as a tax exemption in Gibraltar.

This was reported by a press release from the European Commission.

“The European Commission has decided to sue the United Kingdom in the Court of Justice for fully refunding illegal government aid of approximately €100 million, granted as tax exemptions for passive interest and royalties in Gibraltar,” the statement said.

Margrethe Vestager, EC vice-president responsible for competition policy, said the aid gave an unfair advantage to some multinational companies and was not fully returned more than two years after the decision was made.

“Gibraltar’s relief from corporate tax on passive interest and royalties gave an unfair advantage to some multinationals and had to be returned by the United Kingdom and the Gibraltar authorities. However, more than two years after the Commission’s decision, the assistance is still been not returned in full and there was not enough progress in restoring competition. That is why we decided to appeal to the Court of Justice because of the failure to comply with this decision, “- said Vestager.

We are talking about the period when was still part of the European Union. According to rules, which also applied to Britain, such financial support had to be returned by the recipient country.



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