13.3.2023
EN
Official Journal of the European Union
C 94/19
Appeal brought on 30 November 2022 by the Portuguese Republic against the judgment of the General Court (Eighth Chamber) delivered on 21 September 2022 in Case T-95/21 Portugal v Commission (Case C-736/22 P) (2023/C 94/21) Language of the case: Portuguese Parties Appellant: Portuguese Republic (represented by: P. Barros da Costa, L. Borrego and A. Soares de Freitas, acting as Agents, and M. Gorjão-Henriques and A. Saavedra, advogados) Other party to the proceedings: European Commission
Form of order sought The appellant claims that the Court of Justice should: — set aside the judgment of the General Court of 21 September 2022 in Case T-95/21 Portugal v Commission, EU:T:2022:567, dismissing the action brought by the Portuguese Republic seeking annulment of Article 1 and Articles 4 to 6 of the European Commission’s Decision of 4 December 2020 on aid scheme SA.21259 (2018/C) (ex2018/NN) implemented by Portugal in favour of the Madeira Free Zone (MFZ) — Regime III; (1) — order the European Commission to pay the costs in their entirety, including those incurred by the Portuguese Republic and those relating to the application for interim measures (T-95/21 R).
Grounds of appeal and main arguments 1.
Error of law in the application of Article 108(1) TFEU and Article 1(b)(ii), Article 21 and Article 23 of Regulation (EU) 2015/1589, (2) in that the aid at issue is existing aid and not new aid — MFZ Regime III comprises a regime of existing aid (and not new aid), authorised by the Commission in its Decisions of 2007 and 2013.
The General Court erred in law by relieving the Commission of the requirement of submitting MFZ Regime III to a review of existing aid, to which Article 108(1) TFEU and Articles 21 to 23 of Regulation (EU) 2015/1589 refer. 2.
Error of law consisting in the misinterpretation of the requirement relating to the origin of the profits to which corporation tax is applied, since the MFZ Regime has been applied in compliance with the Commission’s decisions of 2007 and 2013 and with Articles 107 and 108 TFEU — The requirement that profits be the result of activities effectively and materially performed in Madeira should not be interpreted as meaning that only the additional costs incurred by undertakings registered in the MFZ associated with remoteness are to be taken into consideration, that the tax benefits are to apply solely to profits derived from transactions directly subject to those additional costs, or that activities performed outside Madeira by MFZ licensed undertakings engaged in international activities are to be excluded. 3.
Error of law consisting in a failure to state reasons or an insufficient or contradictory statement of reasons — Lack of consistency between the OECD’s international legal requirements in tax matters and the interpretation given to the concept of ‘activities effectively and materially [performed] in the region’ — The General Court erred by failing to explain the consistency between the OECD’s (and the European Union’s) international legal requirements in tax matters and the interpretation given to the concept of ‘activities effectively and materially [performed] in the region’ in the context of the State aid scheme. 4.
Error of law in the interpretation of the criterion of ‘activities effectively and materially [performed] in the region’ on account of a failure to take into consideration the case-law of the Court of Justice on the centre of main interests, the spillover effect and fundamental freedoms