Brussels, 16/10/2013 (Agence Europe) - On 16 October, the European Commission adopted a new decision confirming that a Slovak SKK416.5 million (€11 million) write-off of tax debt in 2004 in favour of Frucona Košice, a.s., a producer of spirit and spirit-based beverages, was incompatible with EU state aid rules. The non-payment of taxes that its competitors had to bear has given Frucona Košice an undue economic advantage. In order to redress the distortion of competition caused by the debt write-off, the company has to pay the due amounts with interest. Frucona Košice sought annulment of the Commission's decision before the EU General Court (GC) in 2006 (Case C-25/2005), which dismissed the action. The company appealed to the Court of Justice (Case C-73/11), which set aside the judgment of the GC. In 2004, Frucona was in financial difficulty, with accumulated tax debts of SKK641 million (€16.9 million), and the company asked its creditors for an arrangement under the applicable insolvency legislation. The Commission argues that this partial write-off amounts to state aid. (FG/transl.fl)