Luxembourg to appeal the Commission’s Fiat decision

The Luxembourg government today has decided to appeal the European Commission’s decision in the Fiat case, in order to seek legal clarity and previsibility on the practice of tax rulings.

The vast majority of EU member states use tax rulings to provide legal certainty for the taxpayer. In its decision, the Commission has used unprecedented criteria in establishing the alleged State aid, thus putting into jeopardy the principle of legal certainty. In particular, the Commission has not established in any way that Fiat received selective advantages within the meaning of article 107 TFEU.

Luxembourg is strongly committed to tax transparency and the fight against harmful tax avoidance. Luxembourg fully adheres to the OECD/G20 BEPS project, which will modernize international tax rules and create a global level playing field. 

Press release by the Ministry of Finance