S H E A R M A N & S T E R L I N G L L P | 1 2 5
STATE AID
In 2018, the European Commission (EC)
concluded two more investigations into
whether the tax ruling practices of Member
States breached European Union (EU) State
aid rules: the first, a finding of unlawful State
aid resulting from tax rulings by Luxembourg
in favor of Engie; the second, a rare finding
of no aid in respect of the treatment by
Luxembourg of McDonald's under the
Luxembourg-U.S. double taxation treaty.
These decisions are discussed below.
Continued overleaf
THE INCREASING
LINK DRAWN BY
REGULATORS
BETWEEN STATE
AID & TAXATION
SYSTEMS
BY JAMES WEBBER AND MARK STEENSON