European Court of Justice Issues Preliminary Ruling on National Suspension Rules in State Aid Recovery

The European Court of Justice (ECJ) May 21 issued a preliminary ruling in Case No. C-545/24, on national suspension rules in state aid recovery. The taxpayer, a Madeira Free Zone (ZFM) company, benefited from a reduced income tax rate under the ZFM regime, which was later declared incompatible with the internal market by the European Commission. The taxpayer sought a suspension of the enforcement procedure under Portuguese law, which permits suspension subject to the provision of a guarantee or, in certain cases, exemption. Upon request for a preliminary ruling, the ECJ held that Article 16(3) of Regulation No. 2015/1589 must ...