On 11 July 2001, the European Commission decided to initiate investigation
procedures in respect of eleven company taxation schemes in eight Member States.
The Commission considers that those tax provisions may constitute State aid
and has doubts as to their compatibility with the EC Treaty. Gibraltar is among
the territories concerned by those procedures.
Then, by applications lodged on 20 August and 7 September 2001, the Government
of Gibraltar sought annulment of the two decisions of 11 July 2001 whereby the
Commission had initiated the formal State aid investigation procedure laid down
in the EC Treaty in respect of the Gibraltar legislation on two specific categories
of company, namely exempt companies (T-195/01) and qualifying
companies (T-207/01), which benefit from tax exemptions under the applicable
national law.
On 12 November 2001, the Court of First Instance, upon application by the
Commission and with the applicant's consent, decided to adjudicate under an
expedited procedure, which has been available pursuant to its Rules of Procedure
since February 2001. This marks the first occasion on which the Court of First
Instance has made use of that new procedure in an economic case.
The Commission had emphasised that the expedited procedure would allow it
quickly to specify the procedure to be followed in all the State aid cases mentioned
above. The repercussions on the general practice adopted by the Commission in
State aid procedures would be significant.
In the context of the expedited procedure, the Court of First Instance was
able to hold the public hearing on 5 March 2002, ie four months after application
for that particular procedure was made. The judgment of 30 April 2002 has thus
closed a judicial procedure relating to State aid which lasted only eight months,
whereas the average duration of a case before the Court of First Instance in
2001 was 19½ months.
The Court of First Instance annulled the decision relating to exempt
companies, on the ground that the Commission had committed an error in classifying
the legislation in issue as a new aid scheme, while the action in respect of
qualified companies was dismissed as unfounded.
Reminder: An appeal, limited to questions of law, may be brought
before the Court of Justice of the European Communities against the decision
of the Court of First Instance within two months of the date of service.
Available in English and French. For the full text of the judgment, please consult our Internet page For further information please contact Sophie Mosca-Bischoff: Tel: (00 352) 4303 3205; Fax: (00 352) 4303 2034 |