Tax treatment of cooperatives and EU State aid policy

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Published 02-02-2015
Mikel Azcoaga Ibarra

Abstract

In the recent years, the European Commission and the European Court of Justice have brought many tax measures applied to cooperatives under the threat to be declared aid incompatible with the internal market. The key question to be answered is in which cases special tax treatment of cooperatives constitutes prohibited State aid under Article 107(1) TFEU. There is a clear contradiction between the development of the promotion of the cooperative model by the EU and the strict application of Article 107(1) TFEU on cooperatives and their tax treatment. A way of bringing legal certainty on this issue would be that he Commission amended its Notice on State aid rules and direct business taxation, by recognizing that tax measures applied to cooperatives acting in the market may be justified by the nature or general scheme of the tax system, under certain conditions.


How to Cite

Azcoaga Ibarra, M. (2015). Tax treatment of cooperatives and EU State aid policy. GIZAEKOA - Revista Vasca De Economía Social , (11). https://doi.org/10.1387/reves.13902
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