EC presses Luxembourg on illegal tax benefits to Engie
The Commission has found that Luxembourg allowed two Engie group companies to avoid paying taxes on almost all their profits for about a decade, without any valid justification. As this is illegal under EU state aid rules, Luxembourg must now recover about €120m in unpaid tax. In 2008 and 2010, respectively, Engie implemented two complex intra-group financing structures for two Engie group companies in Luxembourg. The Commission concluded that Luxembourg's tax treatment of these financing structures did not reflect economic reality.