UK Wins Battle With EU Over Tax Breaks For Multinationals

EU Court Of Justice Rules UK Tax Scheme Was "Not Selective"

The UK has won a significant victory in its battle with the European Union (EU) over tax breaks for multinational companies, after the EU Court of Justice ruled that the UK scheme was "not selective" and therefore did not breach EU state aid rules.

The case related to a tax scheme introduced by the UK government in 2013, which allowed multinational companies to reduce their tax bills by offsetting losses made in other countries against profits made in the UK. The EU Commission argued that the scheme was selective and gave an unfair advantage to certain companies, but the UK government maintained that it was open to all companies that met certain criteria.

The EU Court of Justice ruled in favor of the UK government, finding that the scheme was "not selective" because it was open to all companies that met certain criteria, and that it did not give an unfair advantage to any particular company or group of companies.

Scheme Was "Not Selective"

In its ruling, the EU Court of Justice found that the UK tax scheme was "not selective" because it was open to all companies that met certain criteria. The court found that the criteria were objective and non-discriminatory, and that they did not give an unfair advantage to any particular company or group of companies.

The court also found that the scheme was not designed to favor certain companies or industries, and that it did not have a significant impact on competition in the EU.

Criteria For Scheme

• The company must be a multinational company with operations in multiple countries.
• The company must have made losses in other countries that it wishes to offset against profits made in the UK.
• The company must meet certain criteria relating to its size, profitability, and tax compliance.

Victory For UK Government

The ruling is a significant victory for the UK government, which has been keen to attract multinational companies to invest in the UK. The government has argued that the tax scheme is essential to making the UK a more competitive location for business, and that it will help to create jobs and boost the economy.

The ruling is also a blow to the EU Commission, which has been keen to crack down on tax avoidance by multinational companies. The Commission has argued that the UK scheme is unfair and that it gives an unfair advantage to certain companies.

The ruling is likely to have implications for other EU countries that have similar tax schemes. The European Commission is likely to investigate these schemes to see if they comply with EU state aid rules.

Conclusion

The UK's victory in its battle with the EU over tax breaks for multinational companies is a significant development. The ruling is likely to have implications for other EU countries that have similar tax schemes, and it is likely to make the UK a more attractive location for multinational companies to invest.