Case C- 337/19 Commission v Belgium and Magnetrol International [Archived]

The following Competition practice note provides comprehensive and up to date legal information covering:

  • Case C- 337/19 Commission v Belgium and Magnetrol International [Archived]
  • Case facts
  • Timeline
  • Commentary

Case C- 337/19 Commission v Belgium and Magnetrol International [Archived]

CASE HUB

ARCHIVED—this archived case hub reflects the position at the date of the judgment of 16 September 2021; it is no longer maintained.

See further, timeline and commentary.

Case facts

OutlineAppeal of the General Court judgment in Case T- 131/16 which upheld an action for annulment of the Commission’s decision concerning selective tax advantages granted by Belgium under its ‘excess profit’ tax scheme (SA.37667).

Latest developments

On 16 September 2021, the Court of Justice issued its judgment in which it found that the General Court had committed several errors in its interpretation and application of Article 1(d) of Regulation 215/1589. Therefore, the Court of Justice set aside the General Court’s judgment. However, the Court of Justice concluded that the case should be referred back to the General Court for a ruling on two outstanding pleas raised at first instance concerning whether the Belgian scheme constituted state aid and the legality of the Commission's order to recover aid granted under the scheme.

PartiesAppellant:
• European Commission (the Commission)

Respondent:

• Belgium

• Magnetrol International, Ireland

BackgroundBackground

Under Belgium law, there is a requirement for companies to be taxed based on the level of profit recorded from activities in Belgium. In 2005, Belgium introduced the ‘excess profit’ scheme, which allowed multinational companies to reduce their tax base for alleged ‘excess profit’ based on a binding tax

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