CFE President Piergiorgio Valente has had an article published on Kluwer International Tax Blog, a publication of Kluwer Law International which provides analysis on international tax law. In the article entitled “McDonald’s Fiscal State Aid Clearance: Questions Still Pending”, the CFE President spoke about the outcome of the McDonald’s case and its impacts for the business environment in the Single Market.
The case was based on two tax rulings issued by the Luxembourg tax authorities in 2009 following request by the local subsidiary of the US fast food corporation. The tax rulings affirmed that royalties received by the local subsidiary fell under the scope of the “Bilateral Treaty and were not taxable in Luxembourg.
Regarding the State Aid framework, Piergiorgio Valente said: “(…) the closing of the McDonald’s state aid case constitutes a positive step ahead in the clarification of the EU fiscal state aid framework. Nevertheless, a number of question-marks still remaining prejudice tax certainty in the Single Market. Clear-cut responses are urgently needed; hopefully they will come soon from the Court of Justice, where a series of fiscal state aid cases are awaiting final judgement. ”
Please find the complete article below.