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ECJ confirms illegality of 45% tax credit and mini tax holidays
Friday, 30 de September de 2011

On 28 July 2011, the European Court of Justice issued its judgements which dismissed the appeals for reversal lodged by Foral Deputations against the judgements of the Court of First Instance of 9 September 2008 that ratified the legality of the Decisions adopted by the European Commission that regarded the measures in question (45% tax credit on certain investment and reduction of the tax base for start-ups) as state aids incompatible with the common market.

These Decisions mark the end of a long debate regarding the legality of these aids that dates back to the 1990s.  The ECJ also ordered the aid to be recovered, which, according to the Foral Deputations repeated announcements, has already been done.  However, the European Commission deems that this is not the case and has started proceedings in the Court of Justice to force the Foral Deputations to recover the whole amount of the aid received along with the corresponding interests from the beneficiaries, or otherwise pay huge fines.

ECJ judgement on the 45% tax credit

ECJ judgement on the mini tax holidays

ECJ press release