Dutch dairy group Friesland Foods will still be able to benefit from a Dutch tax break, after a ruling from the European Court of Justice.
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The reduced tax covers the international financing of companies within commercial groups but Friesland Foods had been excluded from the scheme by the European Commission while it was phased out between 2003 and 2010.
Brussels argued that companies like Friesland Foods that had applied for but not received tax breaks prior to 2003, should not receive the reduced taxation available for companies already awarded benefits under the outgoing scheme.
However, Friesland Foods challenged the Commission’s decision and the ECJ ruled that the company had “a legitimate expectation” of the benefits.
The ECJ added that, by treating Friesland Foods differently from companies receiving tax breaks, the “Commission had…infringed the [European Union] principle of equal treatment”.
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