PARIS (dpa-AFX) - Engie, formerly called GDF Suez, (GDSZF.PK,GDFZY.PK), denied it had received any state aid from Luxembourg and said that it has fully complied with the applicable tax legislation.' The company added that it doesn't expect the decision to hit its 2018 results.
Engie said it will assert all its rights to challenge the State aid classification considering that the Commission did not demonstrate that a selective tax advantage was granted. Therefore, Engie will apply for annulment of this Commission's decision before the competent courts.
Earlier today, The European Commission has ordered Luxembourg to recover about 120 million euros in unpaid taxes plus interest from Engie, after finding that the country allowed two of the French company's subsidiaries to dodge taxes on most of their profits for almost a decade.
Following an in-depth investigation launched in September 2016, the Commission concluded that two sets of tax rulings issued by Luxembourg have artificially lowered Engie's tax burden in Luxembourg for about a decade, without any valid justification.
In 2008 and 2010, respectively, Engie implemented two complex intra-group financing structures for two Engie group companies in Luxembourg, Engie LNG Supply and Engie Treasury Management. These involved a triangular transaction between Engie LNG Supply and Engie Treasury Management, respectively, and two other Engie group companies in Luxembourg, the Commission said.
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