EU General Court orders recovery of alumina tax exemptions

The General Court of the European Union issued judgments in joined cases upholding a decision of the European Commission ordering the repayment of tax exemptions granted by France, Ireland, and Italy for alumina production.

Each of the countries- France, Ireland and Italy have only one producer, and each exempted its producer from paying excise duty on mineral oil. The Council of the European Union authorised those exemptions until 31 December 2006, the EU General Court said.

However, the European Commission ruled in 2005 that this constituted illegal state aid, and that aid granted after 2 February 2002 should be recovered. Aid granted up to that date did not need to be recovered as that would be contrary to "the principles of legitimate expectation and legal certainty", the Commission said.

These cases were previously before the General Court on two prior occasions. The General Court today announced that the EC’s decision was valid, and that the tax exemptions (state aid) must be recovered for the period between 3 February 2002 and 31 December 2003.

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