Case C‑705/20

Fossil (Gibraltar) Ltd

v

Commissioner of Income Tax

(Request for a preliminary ruling
from the Income Tax Tribunal of Gibraltar)

Judgment of the Court (Second Chamber) of 15 September 2022

(Reference for a preliminary ruling – State aid – Aid schemes implemented by the Government of Gibraltar concerning corporate income tax – Decision (EU) 2019/700 – Non-taxation of passive interest and royalty income – Decision of the European Commission declaring the aid scheme unlawful and incompatible with the internal market – Recovery obligation – Scope – Domestic provision which was not the subject of the Commission’s investigation concerning the State aid at issue – Set-off of the tax paid abroad in order to prevent double taxation)

1. Aid granted by a Member State – Recovery of unlawful aid – Restoration of the prior situation – Calculation of the amount to be recovered

   (Art. 108(2) TFEU; Council Regulation 2015/1589, Art. 16(3))

   (see paragraphs 39-48, 50-55, 62, operative part)

2. Questions referred for a preliminary ruling – Jurisdiction of the Court – Limits – Examination of the compatibility of aid with the internal market – Precluded – Providing the national court with full guidance on the interpretation of EU law – Interpretation of the concept of aid – Included

   (Arts 107(1), 108 and 267 TFEU)

   (see paragraph 56)

3. Aid granted by a Member State – Concept – Grant by the public authorities of favourable tax treatment to certain undertakings – Included – Advantages resulting from a general measure applicable without distinction to all economic operators – Precluded

   (Art. 107(1) TFEU)

   (see paragraphs 57, 58)

4. Aid granted by a Member State – Concept – Selective nature of the measure – Mechanism for the set-off of tax paid abroad in order to prevent double taxation

   (Art. 107(1) TFEU)

   (see paragraphs 59- 61)

See the text of the decision.