Belgium to pursue recovery of 700 million euros from 35 companies in tax optimisation cases
Monday, 25 July 2016
The President of the EU General Court rejected the Belgian government’s appeal against the European Commission’s decision in January, enjoining Belgium to recover 700 million euros from 35 multinationals. This was reported in L’Echo on Saturday.
In April, Belgium instituted proceedings in the European Court of Justice to repeal the European Commission’s decision, calling upon the President of the EU General Court to adjourn this decision, thus putting it “on ice”.
The General Court dismissed this application meaning that Belgium must now recoup 700 million euros in unpaid taxes from 35 multinationals through the excess profit rulings mechanism, whilst awaiting the court’s decision in the case.
This decision in no way prejudices the initial application to the court. However, what it does do is provide guidance upon the direction the court should take in its decision.