#62023CC0755Opinion of Advocate General Kokott – Court of Justice of the EU (26 March 2026)
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The Opinion of Advocate General Kokott addresses the legality of a tax scheme implemented by Belgium that provided excess profit exemptions considered incompatible with EU state aid law. The key issues include whether the European Commission and EU Courts must adhere to a Member State's interpretation of tax law and the potential liability for recovery of state aid from corporate groups. The Advocate General emphasizes that the practice is not consistent with the wording of Belgian tax law and thus constitutes unlawful aid.
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Key Changes
- Clarification of the interpretation of Belgian tax law regarding state aid
- Establishment of the Commission's authority to order recovery of aid
- Determination of the status of tax rulings as state aid
Obligations
What this law requires
Belgium must recover unlawful state aid granted through the excess profit exemption tax practice from the identified beneficiary companies (55 companies listed in the Commission decision)
Belgium must recover any sums remaining unrecoverable from direct beneficiaries of the excess profit exemption from the corporate group to which each recipient belongs
Belgium must cease implementing the excess profit exemption tax ruling practice based on Article 185(2)(b) of the Income Tax Code 1992 as an unlawful administrative practice
Belgian tax authorities must apply Article 185(2)(b) of CIR 92 strictly in accordance with the literal wording of the provision, limited to cases of non-arm's length transfer pricing adjustments, and not as a general excess profit exemption scheme
Belgium must draw up a definitive list of all beneficiaries of the excess profit exemption aid for recovery purposes