On 26 January 2011 the European Commission (EC) concluded its formal investigation of the German so-called restructuring clause (Sanierungsklausel) in § 8c Corporate Tax Act (Körperschaftsteuergesetz) which allows certain fiscal loss carry-forwards to continue for ailing companies in case of a significant change in their shareholding and decided that this law is incompatible with EU state aid rules as it selectively favours companies in difficulty (press release reference IP/11/65). The EC ordered Germany to recover any aid granted under the restructuring clause.
As to the Commission’s formal investigation and the background of the restructuring clause see our previous article in the Restructuring & Insolvency blog.
Posted by Mario Lindner on Monday 31 Jan 2011