Big hearing in ECJ today, worth 10s of billions to Spanish companies. Court is looking at how @EU_Competition decided a "goodwill tax amortization" for Spanish companies making foreign acquisitions was tantamount to state aid. Court's questions so far all critical of EC /1
Asking how EC knows what objective of a tax regime is, if it disagrees with MS's own objective; Court working out what the test is for "selectivity" (3-steps) and where the burden of proof falls; Court mainly questioning where the reference system lies. EC says it is 'broad'../2
...situating the measure in overall system, but Spanish companies says it is more narrow (i.e. just financial goodwill, not overall tax system). Judge Wahl wants to know how EC gets to the "correct framework". Says EC has "circular reasoning.../3
"...You let the measure as such define the system of reference. " This is the case: curia.europa.eu/juris/liste.js… /ends
Time and again, the last judge a member of the @EU_Commission would want to appear before in Q&A is Judge Wahl, I'd bet. Excellent control of detail on the law & the factual context, & an incisive tone that's always more interrogative than others.
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