commiss decis june aid scheme implement belgium tax rule system unit state foreign sale corpor notifi document number french dutch text authent text eea relev ec commiss european commun regard treati establish european commun subparagraph articl thereof regard agreement european econom area articl thereof call interest parti submit comment pursuant provis cite procedur ecofin council adopt code conduct busi taxat object tackl harm tax competit subsequ establish group assess tax measur fall scope code line undertak code commiss publish notic applic state aid rule measur relat direct busi taxat hereinaft notic stress determin appli rigor respect principl equal treatment framework commiss undertook examin examin case case basi light guidelin set notic tax arrang forc member state connect commiss letter date march ask belgian author provid inform tax rule system unit state foreign sale corpor fsc belgium belgium repli letter date letter date april sg commiss inform belgium decid initi procedur laid articl ec treati respect belgian tax rule system fsc letter date belgium submit observ commiss decis initi formal investig procedur publish offici journal european commun commiss invit interest parti submit comment comment receiv ii descript measur unit state regim fsc descript unit state regim fsc order understand oper tax rule system fsc belgium background world trade organis wto number rule found legisl fsc provid export firm unit state prohibit tax incent precis incent found inter alia export subsidi prohibit articl agreement subsidi countervail measur ascm remov unit state tax code unit state regim fsc foreign corpor typic fulli own subsidiari unit state domest corpor elect subject fsc rule contain section intern revenu code irc portion fsc incom deriv export unit state produc good exempt taxat taxabl unit state tax law section irc incom taxabl quot incom foreign corpor effect connect trade busi carri unit state quot unit state regim fsc incom taxabl unit state deem quot effect connect quot unit state trade busi unit state regim modifi tradit transfer price rule section irc artifici alloc signific proport incom unit state parent compani trade fsc fsc result fsc unit state parent compani exempt unit state corpor tax born compani carri trade busi unit state complet descript relev provis unit state regim domest corpor hold share fsc allow quot dividend receiv deduct quot dividend receiv fsc lieu tradit quot indirect foreign tax credit quot applic unit state law unit state corpor hold share fsc pai unit state tax exempt portion foreign trade incom exempt portion tax hand fsc hand sharehold tax gener unit state rule unit state regim exempt incom quot foreign trade incom quot export unit state product late wto panel found scheme quot prohibit quot export subsidi breach inter alia articl ascm februari appel bodi wto definit rule unit state legisl violat unit state oblig wto unit state congress respond subsequ intern pressur oblig implement wto find repeal regim septemb repeal corpor effect septemb elect fsc fsc exist date fsc rule continu appli transact ordinari trade busi perform exist fsc continu benefit regim respect transact ongo januari pursuant bind contract fsc unrel parti applic septemb forc contract expir fsc regim ceas oper belgian scheme fsc unit state regim fsc organis offic foreign countri agreement unit state share tax inform forc belgium fsc set perman account unit state law portion foreign trade incom earn fsc unit state parent exempt econom process place unit state provid legal framework activ fsc belgium decemb year preced entri forc unit state regim belgian tax administr issu circular special rule system fsc activ belgium hereinaft system belgian domest convent law belgian subsidiari tax belgium worldwid incom perman establish belgium foreign compani tax sole incom earn belgium derog rule belgian fsc belgian perman establish fsc determin appli special method cost method consist appli mark cost incur belgian fsc belgian perman establish fsc unit state parent compani appli belgian tax administr individu rule view determin taxabl profit entiti belgium basi cost comput indirect method determin taxabl profit taxabl entiti respect transact entiti group design assess correct profit attribut entiti adopt quot arm length standard quot intern standard oecd countri agre determin taxabl profit enterpris busi relat provis belgium tax code concern potenti abus transact appli arm length standard bilater tax convent conclud belgium countri adher principl articl oecd model tax convent tax administr adjust profit alloc transact conduct enterpris arm length term descript arm length standard order understand oper rule system fsc belgium intern transact carri enterpris oecd member countri agre corpor tax purpos profit adjust accord arm length principl set articl oecd model tax convent cost method transfer price method recommend oecd indirectli determin arm length price intern transact enterpris oper singl group subject condit enterpris deal commerci relat affect fact manipul profit determin tax reason hand tax administr countri exercis jurisdict tax disallow deduct cost corpor tax purpos adjust profit deriv intern transact entiti give rise doubl taxat unlik recommend transfer price method directli determin arm length price refer price appli compar transact independ compani uncontrol transact cost method determin arm length price refer cost incur supplier good servic transact enterpris control transact cost method mark ad cost refer profit margin ordinarili charg supplier compar uncontrol transact indirect profit determin carri light function perform supplier take account asset risk assum market condit result comput ad mark cost regard arm length price origin control transact report transfer price guidelin multin enterpris tax administr hereinaft oecd report oecd recommend cost transfer price method altern arrang comput tax base transact relat compani method supplier semi finish good relat parti particip transact conclud joint facil agreement long term bui suppli arrang control transact consist suppli servic tax scheme fsc belgium special scheme applic branch subsidiari fsc differ gener tax scheme applic belgian subsidiari branch foreign compani principl belgian subsidiari branch determin taxabl profit basi gener account principl correct belgian tax rule rule appli intern intra group transact carri belgian subsidiari branch entiti group belgian corpor tax law special anti avoid provis relat specif aspect transfer price signific provis articl belgian incom tax code cir quot abnorm gratuit advantag quot grant belgian enterpris framework control transact ad taxabl incom entiti beneficiari foreign compani enjoi favour tax statu countri resid belgian tax law anti avoid provis royalti interest loan incom transfer properti abroad provis taxpay demonstr bona fide natur control transact order avoid arm length price adjust tax administr lastli rule obtain control transact conduct arm length payment constitut abnorm gratuit advantag rule fsc obtain belgian tax administr individu rule determin taxabl profit mean cost method differ profit gener belgium independ compani resid belgium fsc subsidiari unit state compani perman establish belgium fsc unit state compani profit attribut perman establish belgium hereinaft fsc branch tax base corpor tax purpos determin cost method consist appli mark cost incur fsc branch cost includ direct cost relat advertis sale promot carriag good credit risk incom tax paid fsc branch mark appli total cost comput fix applic rate cost base yield taxabl profit subject belgium standard rate corpor tax profit attribut independ compani establish belgium fsc subsidiari taxabl profit principl determin basi account profit adjust tax purpos ordinari tax law belgium profit determin correspond elig cost incur fsc subsidiari belgian tax administr consid oper fsc subsidiari compani carri arm length waiv make adjust control transact taxabl profit gener subject standard rate corpor tax belgium special scheme allow belgian tax administr valid year renew tacitli parti give notic termin month end year period belgian author legal basi rule system articl royal decre implement articl cir provis set minimum taxabl amount foreign commerci compani oper belgium fsc establish belgium profit determin ordinari law rule unchalleng tax author quot gratuit advantag quot anti abus presumpt contain articl cir profit account cost attribut fsc iii ground initi procedur decis initi formal investig procedur commiss view fsc scheme met criteria articl ec treati confer advantag lead reduct tax revenu belgium affect competit trade select natur preliminari view regim confer advantag beneficiari exclus cost cost basi account cost method applic fix mark lead determin artifici lower taxabl incom fsc branch subsidiari calcul ordinari transfer price rule control transact belgium differ justifi natur gener scheme tax system belgium commiss consid derog gener prohibit aid provid articl ec treati appli measur incompat common market iv comment belgium preliminari observ respons assess made commiss letter initi procedur belgian author present preliminari observ claim belgian scheme fsc branch remain larg theoret larg major fsc belgium perman establish fsc appli rule applic perman establish foreign compani belgium addit belgium view june answer parliamentari question harmonis member state tax rule govern fsc commiss implicitli consid scheme compat common market measur question consid constitut exist aid defin articl council regul ec lai detail rule applic articl ec treati result commiss commit procedur error pursu belgium failur notifi advanc commiss tax scheme applic activ carri fsc belgium absenc advantag respect alleg advantag fsc branch belgium maintain scheme correspond ordinari tax regim applic foreign compani oper belgium articl royal decre implement cir reinstat administr presumpt origin enact minimum taxabl profit perman establish foreign compani carri busi activ belgium scheme minimum taxabl profit set elig cost establish belgium minimum mark fix advanc design reliev tax administr oblig determin case case basi arm length profit appli control transact perman establish foreign head offic compani group absenc reduct tax revenu state belgium consid introduct special scheme fsc gener addit tax revenu belgian state respect item incom escap taxat belgium scheme question led reduct tax revenu belgian state absenc effect competit trade member state belgium observ commiss identifi alleg neg impact intra commun trade competit caus scheme question regard actual activ carri fsc relev unit state regim belgium commiss misconstru legitim intern tax competit illegitim nation measur favour multin enterpris gener claim commiss fail effect harmonis tax regim forc member state competit multin base addit belgium claim commiss demonstr fix mark cost method exclus cost comput method taxabl profit belgium result reduc tax base compar result ordinari transfer price method gener applic control transact belgium claim object belgian unit state arrang fsc confer advantag unit state export compani scheme affect competit trade member state competit trade unit state commun reason belgium mention commiss explicitli exclud past anti competit effect scheme question intra commun trade competit absenc select lastli belgium consid scheme question select special legal basi formal consist circular void fsc regim repeal unit state congress scheme applic small number case earlier rule rule sole legal basi articl royal decre implement articl cir ordinari tax law perman establish foreign compani belgium subject scheme select belgium applic special method comput tax base fsc branch justifi imposs determin taxabl profit perman establish analyt lack adequ bookkeep branch belgium exclus expens advertis sale promot transport credit risk insur cost comput fsc branch justifi limit activ carri branch fact activ correspond busi transact econom benefit attribut foreign entiti fsc branch deal benefit attribut parti transact result profit taxabl hand fsc branch accord arm length principl respect belgium maintain tax scheme belgian activ fsc branch differ standard tax arrang control cross border transact conclus belgian govern claim tax rule system regard state aid commiss order repay advantag accru beneficiari virtu principl legitim expect imposs comput claim repay advantag allegedli enjoi resid taxpay fall scope belgian jurisdict recoveri presum aid forgon assess measur letter open formal procedur commiss case fsc subsidiari advantag confer scheme deriv mark appli admiss cost comput admiss cost account fact small portion transact carri fsc subsidiari fix mark appear substanti lower gener activ fsc subsidiari consid comment belgian author commiss maintain posit express letter april open formal procedur scheme examin constitut oper aid mean articl ec treati preliminari observ commiss reject belgium remark tax scheme fsc activ belgium practic relev fsc subsidiari belgium fsc branch subject tax treatment perman establish foreign compani belgium remark prompt observ commiss govern legal base fsc subsidiari branch treat similar fashion corpor tax purpos conclus natur scheme drawn absenc fsc subsidiari belgium fact scheme confer advantag exclus fsc branch constitut incompat aid commiss reject belgian author remark suppos implicit approv tax scheme fsc activ belgium view argument answer abovement parliamentari question indirectli acknowledg exist belgian scheme bear whatsoev classif measur commiss note settl case law answer question aid illeg aid exist aid depend subject assess commiss scheme introduc effect previous notifi commiss measur implement unlawfulli scheme constitut unlaw aid fulfil criteria discuss advantag measur confer beneficiari advantag reliev charg born budget point notic tax advantag provid reduct compani tax burden wai includ reduct tax base commiss confirm assess substanti deviat profit determin standard compar taxpay carri similar cross border transact measur constitut fsc branch subsidiari advantag consist reduct taxabl profit detail time unit state regim fsc set unit state view exempt unit state corpor tax ahead gatt provid econom activ yield exempt incom place unit state unit state legisl requir fsc perform substanti econom activ independ foreign compani wto panel found fsc regim constitut subsidi result forgon revenu compar unit state gener system tax incom foreign subsidiari conclud gatt forbid subsidi link export foreign trade incom deriv quot export properti quot qualifi measur commiss note unit state regim tax advantag confer fsc specif concern quot exempt foreign trade incom quot mean portion gross foreign trade incom fsc comput accord special quot administr price rule quot incom includ sale leas good purchas fsc person control fsc control unit state compani agenc servic concern sale leas good servic concern sale leas transact connect unit state regim commiss observ activ fsc branch belgium correspond sale leas good origin unit state purchas compani group suppli servic relat sale leas transact regim question fix mark appli elig direct cost born fsc branch subsidiari give amount taxabl profit elig cost includ direct cost relat advertis sale promot carriag good credit risk belgium expens directli imput foreign control entiti fsc branch subsidiari deal commiss note fix mark underst profit level attribut fsc branch subsidiari rel mark appli compar transact enterpris enterpris uncontrol partner oecd report guidelin cost method mark ad direct indirect cost incur supplier properti servic control transact order gener profit light function perform take account asset risk assum market condit commiss conclud set mark regim account factor arriv profit determin case underst taxabl profit fsc branch subsidiari commiss note unit state exempt portion foreign trade incom fsc condit fact quot econom process respect transact take place unit state quot section irc requir met fsc particip solicit negoti lead sale export properti make contract sale direct cost transact incur unit state section direct cost includ cost advertis sale promot process custom order arrang deliveri transport good invoic custom receiv payment assum credit risk commiss consid activ gener consider stream incom supplier exclus busi activ cost comput method lead artifici reduct taxabl profit commiss stress similar activ expressli attribut fsc basi cost incur section cost expressli exclud profit comput fsc branch subsidiari belgian scheme commiss conclud take account cost scheme effect exempt incom attribut fsc branch subsidiari belgium commiss confirm assess scheme confer fsc branch subsidiari advantag form reduct taxabl profit belgian corpor tax purpos state resourc advantag grant state state resourc reduct taxabl profit grant compani fix cost method appli elig cost yield tax reduct beneficiari reduct tax revenu belgian treasuri commiss accept argument belgian author scheme led increas tax revenu result establish fsc branch subsidiari belgium analysi make exclus refer tax revenu accru belgian treasuri fsc subsidiari branch tax ordinari belgian tax law comparison tax impos busi activ belgium branch subsidiari foreign compani tax impos fsc oper belgium fact reduc scheme paragraph notic equival consumpt state resourc form fiscal expenditur effect competit trade measur affect competit trade member state belgium criticis commiss letter april neg effect scheme competit light purpos unit state regim fsc confer advantag unit state export compani explain paragraph notic competit affect posit compani benefit measur strengthen compar competitor analysi function unit state regim clear applic belgium cost method scheme lead determin lower taxabl profit compar compar control transact belgium appear fsc branch subsidiari activ sector advertis sale promot carriag good credit servic subject strong intra commun competit advantag special rule system activ unit state fsc belgium confer beneficiari form reduct tax base strengthen posit fsc branch subsidiari posit group belong detriment competitor explain paragraph notic criterion fulfil compani benefit measur carri econom activ involv trade member state fsc branch subsidiari grant reduct tax base special rule system activ unit state fsc belgium necessarili form part intern group part intern trade includ commun trade commiss conclud confer advantag group member scheme strengthen trade posit group beneficiari belong compar group activ involv commun trade select lastli measur specif select favour quot undertak product good quot belgian author maintain circular set scheme void rule system fsc belgium differ system applic belgian subsidiari branch foreign compani specif fix cost method determin minimum taxabl incom deriv exercis commerci activ foreign compani belgium articl royal decre implement articl cir irrespect activ exercis fsc subsidiari fsc branch subsidiari branch foreign compani exclus direct cost relat advertis sale promot carriag good credit risk basi comput taxabl profit fsc subsidiari branch cost method justifi fact cost relat activ constitut compani revenu taxabl foreign jurisdict compani establish belgian activ fsc branch subsidiari administr ancillari natur advertis sale promot carriag good credit risk cost attribut foreign entiti group close scrutini belgium argument commiss confirm opinion rule system belgian activ fsc constitut specif scheme applic exclus fsc branch subsidiari reason ordinari belgian law articl cir taxpay unabl provid evid taxabl profit tax administr determin profit make comparison similar taxpay compar invest capit turnov staff relev element circumst taxpay unabl substanti taxabl profit author specif rule enact royal decre order fix minimum taxabl profit foreign compani oper belgium articl cir articl royal decre implement articl set minimum taxabl profit foreign compani suppli servic tax gross turnov deriv suppli commiss observ arrang laid articl justifi special tax scheme applic fsc activ belgium flat rate comput provid articl minimum taxabl profit fix appli quot resal minu method quot oppos fix cost method belgian domest law tax treati conclud belgium tax administr power adjust book profit belgian taxpay separ compani perman establish foreign compani deriv control transact foreign taxabl entiti case profit compli arm length principl commiss recognis uncertainti attach determin arm length profit contribut develop advanc rule practic belgium articl cir design ascertain control transact conduct arm length gener rule practic consist principl spelt oecd report authoris indirect cost profit determin method provid appli light function perform taxpay take account asset risk assum specif market condit commiss find set taxabl profit level calcul method fix rate result profit account relev factor verifi part arm length analysi function perform taxpay asset risk assum market condit conclud scheme fsc oper belgium specif tax scheme diverg ordinari tax arrang applic belgian subsidiari branch foreign compani justif natur gener scheme system belgium maintain scheme appli foreign enterpris oper belgium posit determin taxabl profit analyt characterist justifi applic special profit comput method imposs determin profit analyt characterist peculiar fsc subsidiari branch commiss observ unit state legisl fsc organis offic foreign countri agreement unit state share tax inform case belgium fsc set perman account benefit unit state tax incent activ fsc determin basi separ account record record account substanti tax administr belgium fsc profit deriv activ perform belgium commiss unjustifi belgium exclus direct cost advertis sale promot carriag good credit risk cost comput basi taxabl profit cost relat busi activ carri fsc branch subsidiari order fsc group benefit partial exempt fsc incom unit state tax contrari belgium profit deriv activ tax foreign jurisdict busi partner belgian fsc base commiss note exclud mention cost profit comput result taxat profit belgium unit state justifi intern tax principl set articl oecd model tax convent quot profit enterpris contract state taxabl state enterpris carri busi contract state perman establish situat enterpris carri busi aforesaid profit enterpris tax state attribut perman establish quot commiss observ principl appli belgian domest law stipul resid compani subject belgian tax worldwid incom resid compani oper belgium subject tax incom aris belgium commiss conclud respect busi profit fsc subsidiari tax aris state resid subsidiari belgium case profit fsc branch aris state branch belgium alloc right taxat propos belgium except belgian tax law tax treati conclud belgium commiss reject justif belgium base fact tax fsc activ belgium confirm specif scheme question compat belgian author challeng commiss assess letter april derog provid articl ec treati state aid consid compat common market appli present case commiss confirm assess sum belgian scheme fsc constitut state aid mean articl ec treati compat evalu light derog provid articl ec treati derog articl concern aid social charact grant individu consum aid make good damag caus natur disast except occurr aid grant area feder republ germani appli case except provid articl appli authoris aid promot econom develop area standard live abnorm low underemploy scheme regard promot execut project common european interest remedi disturb economi belgium provid articl object promot cultur heritag conserv provid articl lastli scheme examin light articl authoris aid facilit develop econom activ econom area aid advers affect trade condit extent contrari common interest tax advantag grant scheme relat invest job creation specif project simpli reliev firm concern charg born budget consid oper aid benefit ceas aid withdrawn line standard practic commiss aid consid facilit develop activ econom area final observ classif state aid commiss confirm assess made letter april effect scheme fsc activ belgium constitut aid incompat singl market scheme enter forc prior notif commiss consid unlaw state aid legitim expect unlawfulli grant state aid found incompat common market recov beneficiari recoveri aid competit posit exist grant restor articl regul ec march state quot commiss requir recoveri aid contrari gener principl commun law quot case law court justic commiss decis make practic establish result commiss action legitim expect exist part beneficiari measur aid grant accord commun law order recov aid infring gener principl commun law judgment van den bergh en jurgen court rule quot court consist held trader regard institut rise justifi hope reli principl protect legitim expect hand prudent discrimin trader foreseen adopt commun measur affect interest plead principl measur adopt quot belgium invok legitim expect beneficiari respect tax scheme exist commiss consid minim effect employ commun belgium competit gener event belgium announc willing dismantl scheme unit state definit compli wto rule decemb latest pursuant articl council regul ec commiss take account except circumst justifi recoveri aid unlawfulli grant beneficiari scheme contrari gener principl commun law respect legitim expect present case note scheme fsc activ belgium bear close resembl respect scheme introduc belgium royal decre decemb tax treatment coordin centr scheme concern intra group activ cost method determin tax base decis commiss consid scheme aid mean articl treati articl decis publish fact commiss rais object belgian coordin centr scheme mention fourteenth report competit polici answer parliamentari question context commiss note decis belgian coordin centr scheme entri forc scheme fsc activ belgium consid beneficiari scheme legitim expect time benefit scheme constitut aid prevent commiss order recoveri aid grant refer belgium willing dismantl scheme decemb latest commiss consid principl legitim expect cover enterpris approv scheme open formal investig procedur respect aid grant end tax year procedur close vi conclus commiss find belgium breach articl treati unlawfulli implement tax rule system busi activ fsc appli belgian tax administr januari conclud tax relief accord scheme constitut state aid cover derog prohibit aid incompat common market commiss find enterpris approv scheme legitim expect time benefit scheme constitut aid requir recoveri aid adopt decis articl state aid scheme implement belgium form special rule system busi activ unit state foreign sale corpor belgium incompat common market articl belgium abolish aid scheme refer articl effect tax year date notif present decis articl belgium inform commiss month date notif decis measur compli articl decis address kingdom belgium brussel june commiss mario monti member commiss oj oj oj footnot addit unit state regim quot foreign trade incom quot fsc exclud incom unit state compani control fsc consid taxabl incom subpart irc pursuant section irc incom ordinarili characteris deem dividend incom control unit state compani subject tax quot foreign base compani incom quot control foreign compani cfc pub scheme replac fsc scheme extraterritori incom act subsequ found incompat wto wto panel appel bodi articl unit state belgium incom tax convent sign brussel juli provis quot exchang inform quot articl entitl quot perman establish quot quot busi profit quot aforement unit state belgium incom tax convent answer june mr de clerq behalf commiss written question mr marijk van hemeldonck oj oj footnot case piaggio ecr footnot regim fsc quot export properti quot mean good manufactur produc grown extract unit state person fsc held primarili sale leas ordinari fsc busi sold leas direct consumpt disposit unit state section irc export properti attribut materi compon import unit state section irc reg section unit state legisl fsc incom control sale leas servic transact determin inter compani price regim combin taxabl incom method gross receipt method arm length price rule whichev method produc highest taxabl incom fsc accept tax exempt quot exempt foreign sourc incom quot deem foreign sourc incom quot effect connect quot conduct activ unit state footnot footnot footnot footnot case van den bergh en jurgen bv commiss ecr paragraph footnot written question oj