The European Commission concluded on Wednesday 22 January that the tax advantage granted by Germany to ailing companies in the event of major changes in their shareholding structure (aid for tax loss carry-forwards), known as the ‘Sanierungsklausel’ (reorganisation clause), does not constitute State Aid within the meaning of EU rules.
The scheme allows an ailing company to offset losses in a given year against profits in subsequent years, despite changes in its shareholder structure....