Is Fiat's Tank Half-Full or Half Empty? The General Court's Decision in Luxembourg V. Commission (T-755/15)

I. Lazarov & S. Buriak, Is Fiat’s Tank Half-Full or Half Empty? The General Court’s Decision in Luxembourg v. Commission (T-755/15), 27 Intl. Transfer Pricing J. 1 (2020), Journal Articles & Papers IBFD.

7 Pages Posted: 22 Feb 2021

See all articles by Ivan Lazarov

Ivan Lazarov

International Bureau of Fiscal Documentation (IBFD)

Svitlana Buriak

Vienna University of Economics and Business - Institute for Austrian and International Tax Law

Date Written: December 9, 2019

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).

Keywords: Fiscal State Aid, ALP, Fiat, Transfer Pricing, EU Tax Law

JEL Classification: K33, K34

Suggested Citation

Lazarov, Ivan and Buriak, Svitlana, Is Fiat's Tank Half-Full or Half Empty? The General Court's Decision in Luxembourg V. Commission (T-755/15) (December 9, 2019). I. Lazarov & S. Buriak, Is Fiat’s Tank Half-Full or Half Empty? The General Court’s Decision in Luxembourg v. Commission (T-755/15), 27 Intl. Transfer Pricing J. 1 (2020), Journal Articles & Papers IBFD., Available at SSRN: https://ssrn.com/abstract=3746866

Ivan Lazarov

International Bureau of Fiscal Documentation (IBFD) ( email )

Rietlandpark 301
Amsterdam, 1019 DW
Netherlands

Svitlana Buriak (Contact Author)

Vienna University of Economics and Business - Institute for Austrian and International Tax Law ( email )

Vienna
Austria

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
76
Abstract Views
267
Rank
535,838
PlumX Metrics