Commission Investigates Italian Tax Reliefs for Areas Affected by Natural Disasters
The European Commission has opened a State aid investigation into Italian measures which reduce taxes and contributions due by companies in areas affected by natural disasters, mainly earthquakes and floods. State aid rules allow Member States to make good damages caused by natural disasters. The Commission is concerned that the measures granted may have gone beyond compensating for the actual damage suffered. The opening of a formal investigation allows the Commission to examine these measures more closely and gives interested parties the possibility to submit comments.
In 2011, after receiving a request from an Italian Court, the Commission became aware of the existence of measures introduced by Italy since 2002 to reduce taxes and compulsory social and occupational insurance contributions due by companies in areas affected by natural disasters. Italy has not notified these measures to the Commission, breaching its obligations under Article 108(3) of the Treaty on the Functioning of the European Union (TFEU).
If the Commission, following this in-depth investigation, finds that the measures are incompatible with EU State aid rules, Italy may have to recover the aid paid out to beneficiaries. The Commission has also ordered Italy to stop implementing these measures until the State Aid investigation has concluded.