In a judgment of 24 September 2019, the General
Court of the European Union ("Court")
dismissed actions brought by Luxembourg and Fiat Finance and Trade
("FFT") against a European Commission
decision of 21 October 2015 ("decision") according to
which a tax ruling issued by the Luxembourg tax authorities in
favour of FFT constituted illegal state aid.
FFT, based in Luxembourg, provides treasury and financial
services to other group companies established in Europe. In 2012,
the Luxembourg tax authorities granted a tax ruling on transfer
pricing ("Advance Pricing Agreement") to
FFT confirming the arm's length character of the remuneration
of FFT as determined by a transfer pricing study.
