Publication Type

Journal Article

Version

acceptedVersion

Publication Date

6-2018

Abstract

EU State aid draws international attention recent years due to its application to fiscal measures granted by Member States to multinational enterprises. It has triggered discussions on the reasonableness of applying State aid law to tax measures. This article aims to explore the fundamental rationale behind EU State aid and its application to tax incentives. By going back to basics, this article contributes to a clearer picture on reasons for the State aid control over tax incentives. Governments tend to use fiscal State aid measures to achieve policy goals and tax incentives could realize the goals since they do bring beneficial effects. However, considering efficiency and equity in the internal market, tax incentives can cause harmful effects as well. It is necessary for State aid law to regulate the harmful effects of tax incentives, therefore guaranteeing the level playing field in the internal market.

Discipline

Accounting | Taxation

Publication

World Competition

Volume

41

Issue

2

First Page

255

Last Page

274

ISSN

1011-4548

Identifier

10.54648/woco2018013

Publisher

Kluwer Law International

Copyright Owner and License

Author

Additional URL

https://doi.org/10.54648/woco2018013

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