Around 300 companies in the Madeira Free Trade Zone will have to return €1 billion in aid considered illegal by the European Union.
The Tax Authority will demand that 300 companies in the Madeira Free Trade Zone return around €1 billion in aid considered illegal, reports Público on Monday.
According to the newspaper, at stake are IRC benefits granted irregularly since 2007. European norms determine companies can only benefit from a reduced IRC rate if they create and maintain a certain number of jobs. However, the European Commission considers that Portugal has violated this commitment.
The first notifications to restore these incentives will follow for companies that have since closed their doors, with the government guaranteeing that the Tax Authority will go “all the way” to recover the amount in question.