commiss decis octob state aid scheme nn coordin centr implement luxembourg notifi document number french 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 direct busi taxat view put stop unfair practic area undertak contain code commiss publish notic applic state aid rule measur relat direct busi taxat hereinaft refer quot notic quot reaffirm determin appli rule rigor accord principl equal treatment procedur cover notic letter februari commiss ask luxembourg inform luxembourg scheme coordin centr letter march luxembourg author inform commiss scheme withdrawn februari letter april commiss ask inform view fact withdrawn scheme produc effect produc effect inform suppli commiss letter luxembourg author date letter sg juli commiss inform luxembourg decid initi formal investig procedur laid articl ec treati respect tax scheme coordin centr letter septemb luxembourg submit comment commiss decis commiss decis initi procedur publish offici journal european commun commiss invit interest parti submit comment measur receiv comment interest parti letter march commiss ask luxembourg inform provid letter april ii descript measur statu coordin centr govern circular lir june hereinaft refer quot circular quot quot circular quot circular repeal circular lir februari total compani approv coordin centr oper coordin centr resid limit compani multin natur sole purpos provis servic exclus compani enterpris foreign intern group mean circular foreign intern group refer compani financi link incorpor countri luxembourg parent compani resid taxpay subject countri tax luxembourg corpor tax impôt sur le revenu de collectivité coordin centr statu grant prior administr approv approv principl limit tax year administr servic provid coordin centr compani group organis secretariat servic advertis market market research suppli gather process technic administr inform relat nation intern author centralis account administr financi legal expertis servic provis assist servic directli indirectli relat activ question circular state corpor tax purpos provis intra group servic gener trade profit line normal behaviour prudent manag relat independ parti end taxabl profit determin cost price method method involv appli flat rate mark deduct expenditur link servic provid compani group expenditur charg consider exce luf approxim eur trade profit fix flat rate luf approxim eur coordin centr pursu activ involv payment invoic currenc trade profit determin cost price method basi consider gener payabl condit full competit exchang risk born parti consider equal invoic account proport exchang risk oper cover activ authoris circular carri intermediari perman establish luxembourg foreign intern group resid compani coordin centr form part foreign intern group qualifi method calcul taxabl profit iii ground initi procedur evalu inform suppli luxembourg author commiss examin method determin mark rate exclus expenditur calcul tax base exercis discretionari power administr confer advantag coordin centr view advantag grant state resourc affect competit trade member state select final felt except gener principl state aid prohibit applic doubt led commiss initi formal investig procedur case iv comment luxembourg comment submit luxembourg author summaris scheme withdrawn longer produc effect respect enterpris provis circular appli end luxembourg author point problem pose transfer price defend solut adopt final measur constitut aid mean articl treati transfer price link exist enterpris group enabl theori determin condit suppli good servic differ appli parti act independ enterpris oper free market enterpris tempt alloc profit group minimis total tax burden group case multin group alloc profit result tax base increas countri reduc explain concern govern ensur transfer price group close market price oecd member state belong principl full competit adopt elimin impact special condit level profit principl set articl oecd model tax convent serv dual object ensur tax correctli assign countri avoid doubl taxat enabl multin enterpris independ enterpris treat equal method determin transfer price includ quot compar price free market quot method cost price method refer prevent tax avoid principl full competit luxembourg author point articl law decemb incom tax constitut legisl basi transfer price context circular adopt facilit taxat type activ luxembourg administr compar price charg group price charg compar transact independ enterpris relev compar data luxembourg administr opt case cost price method view determin transfer price intra group servic provid coordin centr basi uniform method recommend oecd minimum threshold rate compar obtain free market deem reason type servic higher rate appli tax administr receiv inform indic higher profit margin achiev circular involv state aid mean articl treati measur give rise advantag measur set lighten tax burden born coordin centr sole determin accur market price intra group servic appli cost price method luxembourg point paragraph notic commiss stress tax measur pure technic natur provis prevent doubl taxat tax avoid constitut state aid circular gener measur design prevent tax avoid produc fair trade profit coordin centr constitut state aid requir coordin centr belong larg intern group imposit minimum profit luf approxim eur ensur suffici volum activ luxembourg profit insignific tax point view applic circular justifi circular requir parent compani subject abroad tax luxembourg corpor tax transfer excess deduct tax foreign countri rule consid luxembourg tax arrang favour foreign countri parent compani coordin centr origin refus appli provis quot parent compani subsidiari quot direct respect distribut dividend luxembourg coordin centr appli measur prevent tax avoid luxembourg note commiss question principl full competit compli claim object met scheme assert author margin discret liabl favour enterpris group luxembourg author commiss criticis aspect advantag enjoi coordin centr hand practic applic cost price method compar transfer price paid fact deduct expenditur includ tax base aspect concern luxembourg stress transfer price charg enterpris higher result applic cost price method method led advantag enterpris result smaller tax base appli luxembourg author admit circular explicit refer principl link tax balanc sheet commerci balanc sheet rule possibl taxpay sought advantag loophol order overcharg luxembourg servic perform compani group luxembourg consid countri mean check overcharg take place commiss conclud applic circular case constitut unlaw state aid demand recoveri enterpris concern identifi individu calcul made enterpris basi real transfer price luxembourg point commiss accept method cost price method advantag altern method result taxat equal compar arriv independ oper appli tradit method taxabl profit calcul basi differ enterpris incom charg luxembourg commiss consid advantag deem exist result appli cost price method suffici compar obtain mean tradit method commiss concern extent advantag luxembourg consid cost price method case give rise advantag point taxabl incom longer compar obtain independ oper mean tradit method aspect luxembourg consid commiss claim includ tax base expenditur deduct pursuant articl law corpor tax advantag confer coordin centr luxembourg author exclus justifi exempt dividend corpor tax wealth tax note dividend alloc base trade result genuin expenditur question deduct aris bonus attend fee donat cultur charit gener interest institut exclus basi determin cost price explain avoid doubl taxat bonus alloc reserv form basi net result luxembourg take view deduct expens ad coordin centr tax result word form case part tax base includ basi determin cost price tax luxembourg point circular appli entireti confer advantag entireti singl aspect advantag grant state resourc luxembourg acknowledg advantag confer circular state resourc measur select alleg select stem applic discretionari practic luxembourg author confirm administr discret grant refus applic scheme coordin centr contrari select result legisl administr except tax provis assert state aid rule appli situat compar case commiss cite preced luxembourg point point notic commiss explain tax benefit occas restrict type undertak function product good constitut state aid luxembourg decis judgment court justic european commun measur deem select appli type undertak function luxembourg specif criterion met circular stem normal applic luxembourg tax rule circular appli intern group suffici size form part effort combat abnorm low transfer price condit impos relat size group establish countri limit order guarante oper manag luxembourg volum suffici give rise difficulti determin transfer price enterpris concern principl appli determin taxabl result coordin centr propos circular base rule transfer price set oecd gener scope applic taxpay encount intra group invoic circular involv applic lower tax rate coordin centr lai tax base calcul take account specif characterist multin compani tax measur pure technic natur commiss constitut state aid loophol word circular obtain lower taxat abus extens concept state aid exploit loophol taxpay aid ancillari argument luxembourg take view arrang coordin centr consid commiss derog normal arrang justifi natur gener scheme system luxembourg author want reconcil principl legal certainti full competit reason outlin chose cost price method order give taxpay concern point refer lai minimum threshold declar profit earn intern oper measur distort competit affect trade member state rule transfer price design prevent disguis transfer profit abroad mean inappropri invoic method circular address intern group aim permit reduct taxabl profit intern group prevent tax avoid luxembourg circular consid confer advantag improv competit posit enterpris make group common market principl legitim expect luxembourg view taxpay circular applic legitim expect milit repay state aid result applic circular preced appli state aid rule choic method calcul tax base appli involv radic unforese extens current scope articl treati commiss consid time rule govern taxat european headquart multin group fall scope treati provis state aid likewis commiss rais object taxat coordin centr belgium luxembourg legitim ground believ circular legal public notic commun polici state aid unclear recoveri extend advantag obtain date notic publish principl retroact tax law luxembourg take view request recoveri alleg aid tantamount retroact amend ordinari tax rule run counter basic constitut principl retroact tax law commiss impos recoveri aid result gener tax scheme contest event commiss imposs recov alleg aid luxembourg consid consist case law effect fact imposs recov illeg aid member state requir recov situat luxembourg find case figur put amount aid establish real transfer price charg coordin centr envisag method oecd assess measur comment submit luxembourg author commiss confirm initi posit set letter luxembourg juli initi formal investig procedur laid articl treati take view comment submit luxembourg enabl doubt express letter dispel tax scheme review constitut state aid mean articl treati deem aid question illeg constitut oper aid declar compat common market consid case luxembourg recipi enterpris justifi legitim expect aid recov begin commiss accept luxembourg comment problem pose transfer price intern context prevent tax administr cost price method determin tax base intra group servic provid coordin centr system liken tax measur technic natur refer indent paragraph notic rule appli method case suggest grant aid rule order regard aid mean articl treati measur meet criteria set advantag firstli measur confer recipi advantag reliev charg born budget object altern method determin taxabl incom order prevent transact hide undu advantag donat sole purpos avoid taxat achiev taxat compar arriv independ oper basi tradit method taxabl profit calcul basi differ enterpris incom charg compli principl full competit area transfer price intern principl set articl oecd model tax convent detail oecd transfer price guidelin analysi requir individu fact circumst account oecd guidelin recommend quot safe harbour quot fix margin luxembourg author provid inform mark up establish tax base coordin centr cost price method determin practic commiss accept argument administr discretionari power grant refus applic scheme coordin centr clear answer luxembourg administr power determin mark up appli circular fix minimum mark lai rule guidelin determin mark up practic luxembourg author expressli mark recommend circular appli commiss conclud coordin centr group belong deriv advantag dint fact practic luxembourg systemat grant minimum rate check correspond econom realiti underli servic transpir luxembourg author fail case ensur coordin centr subject taxat compar gener appli enterpris liabl tax luxembourg irrelev circular requir parent compani subject abroad tax luxembourg corpor tax foreign countri parent compani origin appli measur prevent tax avoid aspect demonstr luxembourg scheme coordin centr confer advantag advantag confer justifi conduct member state possibl account advantag confer member state attempt reduc cancel effect detract realiti advantag case method appli luxembourg tax cross border intra group servic base cost price talli method member state taxabl profit calcul basi differ enterpris incom charg case risk overcharg give rise reduct tax burden member state offset increas tax burden luxembourg case advantag obtain luxembourg top advantag obtain member state offset luxembourg claim circular explicit refer principl link tax balanc sheet commerci balanc sheet commiss critic make note case cross border intra group servic compar cost price system real transfer price ensur system result taxat compar obtain mean tradit method extent advantag deriv system determin stage analysi purpos recov aid prove commiss note minimum mark systemat appli case luxembourg provid indic exist check ensur applic minimum rate talli level taxat result applic tradit method commiss take view conduct tax administr effect confer advantag regard claim deduct expenditur includ base mark rate appli cost price method commiss accept argument put forward luxembourg logic stem comparison tradit method taxat tax form part genuin busi expenditur payment base trade result exclus donat follow logic repres genuin busi cost word deduct expenditur contribut realis taxabl result exist advantag establish result systemat applic rate determin consider appli bonus attend fee repres distribut net profit competit trade member state affect criterion met coordin centr suppos provid servic predominantli compani situat luxembourg accord case law court justic stress paragraph notic mere fact measur strengthen firm posit compar firm compet intra commun trade conclud trade affect case coordin centr enterpris group belong found posit strengthen result reduc tax burden centr luxembourg assum case take account possibl group question activ sector characteris exist trade member state commiss take view measur liabl affect trade luxembourg author claim main object circular reduct taxabl profit prevent disguis transfer measur assess effect object consist confirm case law object pursu scheme question prevent classifi state aid mean articl treati select tax provis question concern coordin centr belong multin group present countri luxembourg headquart luxembourg enterpris access advantag state point notic tax advantag occas restrict function intra group servic hold luxembourg scheme coordin centr criterion select met aspect select stem fact coordin centr total expenditur exce luf approxim eur trade profit fix flat rate luf approxim eur impli select favour larg group group unabl achiev minimum expenditur threshold exclud equal treatment cost price method luxembourg author admit requir coordin centr belong larg intern group imposit minimum profit ensur suffici volum activ luxembourg commiss consid aspect select unjustifi natur gener scheme luxembourg tax system limit ensur oper manag luxembourg volum suffici give rise difficulti determin transfer price enterpris concern difficulti link determin transfer price appli principl servic good suppli compani intern natur suppli increas difficulti face compani belong larg scale multin group headquart luxembourg case difficulti question relev luxembourg author systemat appli rate calcul cost price luxembourg comment effect preced form court decis judgment commiss point preced classif scheme coordin centr state aid stem directli articl treati note recent case law tax measur select constitut state aid appli sole undertak carri invest exceed amount creat number job commiss take view reason appli case reconcil principl legal certainti full competit provid taxpay point refer prevent tax administr opt cost price formula commiss criticis system mean facilit determin transfer price transact entiti case issu systemat applic minimum rate regard derog correct cost price method liabl confer advantag enterpris justifi natur gener scheme system state resourc case reduct amount tax result applic circular involv reduct tax revenu constitut state resourc compat luxembourg author challeng preliminari assess compat scheme coordin centr set decis initi formal investig procedur commiss confirm assess summaris derog provid articl treati aid social charact grant individu consum aid make good damag caus natur disast except occurr aid grant region feder republ germani applic case derog provid articl aid promot econom develop area standard live abnorm low underemploy applic likewis scheme coordin centr fall categori import project common european interest elig derog provid articl design promot cultur heritag conserv qualifi derog provid articl examin scheme elig derog provid articl authoris aid facilit develop econom activ econom area case aid advers affect trade condit extent contrari common interest tax advantag grant scheme link invest job creation specif project constitut ongo tax relief classifi oper aid commiss take view aid question liabl advers affect trade condit extent contrari common interest recoveri measur question regard exist aid mean articl treati articl council regul ec march lai detail rule applic articl ec treati articl ec treati implement entri forc treati notifi commiss requir articl treati cover limit period constitut aid moment put effect constitut aid state aid grant illeg found incompat common market natur consequ aid recov recipi accord articl regul ec purpos recoveri restor competit situat exist aid grant absenc preced appli state aid rule choic method calcul tax base alleg lack clariti commun state aid polici justifi exempt basic principl claim imposs recov aid principl retroact tax law relev case law recoveri tax credit present difficulti administr point view fact enabl recoveri deem technic imposs consist confirm case law member state plead provis practic circumst exist intern legal system order justifi failur compli oblig commun law provis lai time limit revoc administr act relev provis nation law appli recoveri requir commun law render practic imposs interest commun fulli consider case member state escap effect monitor state aid compli oblig articl treati notifi advanc plan grant aid legitim expect articl regul ec lai quot commiss requir recoveri aid contrari gener principl commun law quot case law court justic commiss practic previou decis establish recoveri contrari gener principl commun law commiss action recipi legitim expect aid grant accord commun law van den bergh jurgen court state 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 commiss decis ecsc octob spain corpor tax law commiss note similar spanish system french system approv basi constitut aid mean articl eec treati articl ec treati present case note luxembourg scheme coordin centr close resembl scheme introduc belgium royal decre decemb taxat coordin centr scheme relat intra group activ cost price method determin tax base decis commiss view scheme involv state aid mean articl eec treati decis publish fact commiss rais object belgian scheme made public time xivth report competit polici answer parliamentari question connect commiss note decis belgian scheme adopt entri forc luxembourg scheme note beneficiari scheme approv coordin centr commiss decis juli initi formal investig procedur point circular repeal februari appli beneficiari decemb commiss accept argument put forward luxembourg beneficiari legitim expect waiv recoveri aid grant vi conclus commun find luxembourg scheme coordin centr constitut state aid mean articl treati derog provid articl applic find luxembourg unlawfulli implement system question breach articl treati note system withdrawn februari tax advantag grant beneficiari ceas decemb lastli acknowledg beneficiari legitim expect rule recoveri state aid found incompat common market requir aid recov adopt decis articl tax scheme coordin centr implement grand duchi luxembourg mean circular lir june constitut state aid incompat common market articl decis address grand duchi luxembourg brussel octob commiss mario monti member commiss oj oj oj footnot transfer price price compani invoic good servic compani council direct eec juli common system taxat applic case parent compani subsidiari member state oj written question oj footnot case philip morri commiss ecr case belgium commiss ecr paragraph paragraph argument put forward luxembourg join case territorio histórico de álava diputación foral de álava commiss paragraph join case paragraph publish footnot oj case commiss itali ecr paragraph case commiss belgium ecr paragraph case commiss germani ecr paragraph case van de bergh jurgen commiss ecr paragraph oj footnot