Tax exemptions for alumina production | KPMG | GLOBAL

France, Ireland, Italy must recover tax exemptions for alumina production

Tax exemptions for alumina production

The General Court of the European Union today issued judgments in joined cases upholding a decision of the European Commission ordering the repayment of tax exemptions granted by France, Ireland, and Italy for alumina production.


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As explained in today’s release [PDF 175 KB] from the General Court, these three EU Member States exempted certain alumina production operations from having to pay the excise tax (duty) on mineral oils used in the production of alumina. The EC ultimately determined that the tax exemptions conferred an advantage on the recipient companies, were selective, and distorted competition and affected the single market—i.e., unlawful state aid.

These cases were previously before the General Court on two prior occasions. The General Court today announced that the EC’s decision was valid, and that the tax exemptions (state aid) must be recovered for the period between 3 February 2002 and 31 December 2003. 

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