General Court of EU considers former Spanish 'tax lease' for naval sector to be legal

The General Court of the European Union has upheld that the Spanish tax lease system, known as 'tax lease' is legal. It is a tax gear that the government set to encourage investment in the Spanish naval sector and several dozens of companies and investors benefited.

In a ruling made public today, the Court overturns the decision of the European Commission to outlaw this support system, forcing investors to recover all the aid received for four and a half years and prohibited further implement of tax credits generated in the future.

The ruling responds to an appeal by the Spanish government against the EU executive and others presented by Lico Leasing and Small and Medium Shipyards Restructuring Society, but there are still 63 more appeals from about 80 companies, which will also benefit from this ruling.

The decision of the Commission, adopted by the President Joaquín Almunia as Competition commissioner, was much debated in the Spanish naval and business sector, where the socialist politician was accused of unfairly harm their interests.

(Source: Expansion)