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EU: Tax

Volume 688: debated on Tuesday 16 January 2007

asked Her Majesty's Government:

Whether they will seek sanctions against the officials of the European Commission who were responsible for the failure to prosecute the French authorities within the six-year time limit for the illegal tax advantage given to French companies under the economic interest grouping tax scheme between 1998 and 2005. [HL1118]

No. The European Commission has the competence to launch investigations of allegations of illegal state aid. This will usually be triggered by complaints from affected businesses. Her Majesty’s Government will intervene, in support of such complaints, where appropriate.

There is no six-year time limit on the recovery of illegal state aid. The State Aid Procedural Regulation provides for a 10-year limit.