Press Release: State aid: Commission opens in-depth investigation into German rules on fiscal loss carry-forward for ailing companies (“Sanierungsklausel”)

The European Commission has opened a formal investigation under EU Treaty state aid rules into a German tax advantage granted to ailing companies when there are significant changes in their shareholding. The German authorities consider that this measure does not fall under the state aid rules. The Commission, however, is concerned that the measure may favour ailing companies in comparison to healthy companies, with regard to their loss carry-forwards. The Commission has doubts on the compatibility of the measures with the EU Guidelines on Rescue and Restructuring aid. The opening of an in-depth investigation gives interested parties the possibility to comment on the proposed measures. It does not prejudge the outcome of the procedure.