Brussels, 18/07/2013 (Agence Europe) - On 17 July, the European Commission opened an in-depth investigation to verify whether the new interpretation of a Spanish scheme allowing tax deductions in connection with the acquisition of shareholdings in non-Spanish companies is in line with EU state aid rules.
In 2009 and 2011, the Commission rejected earlier versions of the scheme because it allowed companies to write off over 20 years the “financial goodwill” deriving from acquisitions of shareholdings in foreign countries, giving them a selective advantage over their competitors buying shares in Spanish companies. The original scheme applied only to direct acquisitions, whereas the new Spanish interpretation would retroactively allow tax deductions also for indirect acquisitions. The Commission considers that the amended scheme may again involve state aid and has doubts as regards the compatibility of such aid. It says that beneficiaries of the new scheme, unlike those of the original set-up (see EUROPE 10292) have no legitimate expectations since their situation (tax benefits derived from indirect acquisitions) was not covered by the scope of the original measure at the time of the adoption of the 2009 and 2011 Commission decisions. Meanwhile, the Commission requires Spain to suspend application of the new interpretation until the Commission takes a final decision on whether it is compatible with the internal market. Interested parties have a month to submit their comments to the Commission. (FG/transl.fl)