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11. Dezember 2023 | State Aid Uncovered von Phedon Nicolaides

Member States Have Discretion to Determine their Own Tax System and Interpret its Provisions

Introduction In the landmark cases on turnover taxes implemented by Hungary and Poland, the Court of Justice censured the European Commission for defining its own hypothetical reference tax system that was different from the relevant tax provisions in those two countries. The Court again faulted the Commission in its more recent judgments on advance tax rulings. Given the discretion of […]

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22. November 2022 | State Aid Uncovered von Phedon Nicolaides

The “Arm’s Length Principle” and the Taxation of Transactions between Related Companies

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The arm’s length principle is not an autonomous principle that can be applied to any advance tax ruling. It must be provided in the national tax system. Furthermore, the arm’s length principle must be applied, if it exists in the national tax system, in the form that is defined by that tax system. Introduction In a series of decisions beginning […]

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29. Juni 2021 | State Aid Uncovered von Phedon Nicolaides

Amazon and the Difficulty of Finding a Comparable Tax Payer

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To apply the Arm’s Length Principle to transactions between two related companies, the Commission must identify the less complex company of the two and compare it to a similar independent company. Methodological errors in the application of the Arm’s Length Principle by national authorities does not necessarily prove the existence of advantage. Introduction On 12 May 2021 the Commission suffered […]

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