EDF takes EU to court over tax breaks repayment

14th April 2004, Comments 0 comments

PARIS, April 14 (AFP) - French state electricity giant EDF will file a lawsuit with the European Court of Justice to contest a demand by the European Commission that it repay EUR 1.2 billion (USD 1.4 billion) in tax breaks and accrued interest, its chief executive announced.

PARIS, April 14 (AFP) - French state electricity giant EDF will file a lawsuit with the European Court of Justice to contest a demand by the European Commission that it repay EUR 1.2 billion (USD 1.4 billion) in tax breaks and accrued interest, its chief executive announced.

The lawsuit will be filed before April 28 and has the support of the French government, which fully owns the utility, Electricite de France chairman Francois Roussely told several reporters Tuesday.

The EUR 1.2 billion comprises EUR 889 million in aid received in the form of tax breaks as well as interest accrued.

The commission officially demanded EDF repay the sum on February 17.Under EU rules, EDF has about two months after the date of notification by the competition authorities to contest the decision.

The payment required a one-time charge of EUR 328 million on EDF's 2003 earnings.

© AFP
       
                                                                 Subject: French news

 

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