A legal victory for Engie… and for Luxembourg. The French company and the Luxembourg government contested an European Commission decision within the EU courts.
The Commission had previously deemed the tax benefits granted by Luxembourg to the energy company spanning from 2008 to 2010 as illegal. These tax rulings had facilitated Engie in “avoiding taxation on virtually all profits made by subsidiaries established in Luxembourg.”
The Commission’s directive called for Luxembourg to recover €120 million from Engie, a demand opposed by the Grand Duchy. Engie and Luxembourg first pursued appeals at the General Court of the European Union which ruled against them and upheld the Commission’s decision. Subsequently, the case made its way to the Court of Justice of the EU.
In its ruling on Wednesday, the Court affirmed that the Commission had “committed errors in its various analyses.” Consequently, the Commission’s decision “is hereby annulled.” Engie is relieved of the obligation to return €120 million to Luxembourg.
