| Author (Corporate) | European Commission: DG Competition |
|---|---|
| Publisher | European Commission |
| Publication Date | 20/06/2018 |
| Content Type | Overview |
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Summary: The European Commission announced on 19 September 2016 it was launching an in-depth investigation into Luxembourg's tax treatment of GDF Suez group, a French electric utility company (later Engie). On 20 June 2018, the Commission concluded that the country allowed two Engie group companies to avoid paying taxes on almost all their profits for about a decade and decided Luxembourg would have to recover about €120 million in unpaid tax. Further information: Following the in-depth investigation, the Commission concluded that two sets of tax rulings issued by Luxembourg artificially lowered Engie's tax burden in Luxembourg for about a decade, without any valid justification. The Commission found that the tax rulings granted a selective economic advantage to Engie by allowing the group to pay less tax than other companies subject to the same national tax rules. In fact, the rulings enabled Engie to avoid paying any tax on 99% of the profits generated by Engie LNG Supply and Engie Treasury Management in Luxembourg. Engie (former GDF Suez) is a French electric utility company. Engie Treasury Management S.à.r.l., a treasury company, and Engie LNG Supply, S.A, a liquefied natural gas trading company, are both part of the Engie group. In November 2017, Total has signed an agreement with Engie to acquire its LNG business, including Engie LNG Supply. |
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| Source Link | Link to Main Source http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_44888 |
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| Subject Categories | Energy, Internal Markets, Taxation |
| Countries / Regions | Europe, Luxembourg |
