Atlas Copco AB – Annual report – 31 December 2021
Industry: manufacturing
9. Taxes (extract)
European Commission’s decision on Belgium’s tax rulings
On January 11, 2016, the European Commission announced its decision that Belgian tax rulings granted to companies regarding “Excess Profit” shall be considered as illegal state aid and that unpaid taxes shall be reclaimed by the Belgian state. Atlas Copco had such tax ruling since 2010.
Following the European Commission decision, Atlas Copco has paid, in total MEUR 313 (MSEK 2 952). During 2015, Atlas Copco made a provision of MEUR 300 (MSEK 2 802) and paid MEUR 239 (MSEK 2 250) in 2016. In the second quarter of 2017, Atlas Copco paid the remaining amount of MEUR 68 (MSEK 655). During 2017, MEUR 13 (MSEK 125) was expensed as an interest cost.
The Belgian government, as well as Atlas Copco, appealed the decision to the General Court of the European Union (EGC) in Luxembourg and on February 14, 2019, the EGC annulled the decision taken by the European Commission on January 11, 2016. On May 3, 2019, the European Commission appealed the EGC’s annulment. Following a decision by the European Court of Justice in 2021, the annulment was incorrect, and the case has again been referred to the General Court for judgement.
In September 2020, the European Commission also published individual opening decision stating that the specific decisions granted by Belgium between 2005 and 2014 regarding tax rulings granted to multinationals regarding “Excess Profit” violated the EU rules for state aid. One of these individual decisions concerns Atlas Copco.
It is likely several years before final decisions are made.
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