EU Commission extends inquiry into Gibraltar tax regime

The European Commission has extended the scope of its ongoing in-depth inquiry into Gibraltar's corporate tax regime to reassess the compatibility with State aid rules of a 2012 tax ruling granted to MJN Holdings Gibraltar Limited.

In December 2018, the Commission found that Gibraltar's corporate tax exemption regime for interest and royalties, as well as five tax rulings were illegal under EU State aid rules. In April 2022, the General Court partially annulled the Commission's decision. In particular, the Court found that the 2014 Commission's decision opening proceedings was not sufficiently precise as to the measure in favour of MJN GibCo. At the same time, the Court confirmed the Commission's decision on the tax exemption regime.

Following the partial annulment, the Commission has decided to extend the scope of its original investigation to specify further the measure in favour of MJN GibCo, in line with the Court's indications, and reassess the information submitted by the UK in relation to MJN GibCo 2012 tax ruling.