Quotation Lazarov, Ivan, Buriak, Svitlana. 2020. Is Fiat’s Tank Half-Full or Half Empty? The General Court’s Decision in Luxembourg v. Commission (T-755/15). International Transfer Pricing Journal (ITPJ). 27 (1)


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Abstract

This article examines the recent decision by the General Court on the case of State aid concerning Fiat (T-755/15). Although the authors agree with the ultimate outcome of the decision, they believe that the General Court erred in its reasoning. First, it should not have endorsed that there are transfer pricing rules inherent in article 107 of the TFEU and outside of the domestic reference framework. Second, the General Court was wrong in accepting the accounting equity as an appropriate profit level indicator when return on equity is applied to an entity that performs financing activities. Finally, the General Court should have recognized the principle relevance of the neutralization argument (i.e. saving taxes in one jurisdiction does not necessarily entail an advantage on the group level).

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal International Transfer Pricing Journal (ITPJ)
Language English
Title Is Fiat’s Tank Half-Full or Half Empty? The General Court’s Decision in Luxembourg v. Commission (T-755/15)
Volume 27
Number 1
Year 2020
Reviewed? N
URL https://research.ibfd.org/#/doc?url=/collections/itpj/html/itpj_2020_01_lu_1.html
DOI n.a.
Open Access N

Associations

People
Lazarov, Ivan (Details)
Buriak, Svitlana (Details)
Organization
Institute for Austrian and International Tax Law IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5206 Financial law (Details)
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