European Court of Justice Issues Judgement on Luxembourgish State Aid to Engie

The European Court of Justice (ECJ) Dec. 5 issued a final judgement for Case Nos. C-454/21 P and C-451/21 P, on Luxembourgish state aid to Engie. Two subsidiaries of Engie entered into restructuring transactions, resulting in the generation of equity for their respective holding companies. The Luxembourgish Tax Authority assessed these transactions based on the companies’ balance sheet margins, rather than within the framework of the normal determination of profits. The European Commission (EC) found these transactions were improperly taxed, thus providing a selective advantage to Engie. On appeal, The ECJ found that: 1) the EC’s decision failed to identify ...