State Aid Recovery in the Madeira Free Zone: Suspension of tax enforcement procedures
01/10/2026
Following the CJEU Utiledulci ruling and recent TCAS case law, interpretation of internal procedural rules on suspension of tax enforced procedures vis a vis State Aid recovery claims has changed significantly:
Standard guarantee or waiver rules no longer apply;
Guarantees must remove the competitive advantage (e.g., pledged deposit in a blocked account covering aid and interest);
Financial difficulties no longer justify waiving a guarantee;
Pending legal appeals do not automatically suspend enforcement.
This case highlights intersection between EU State Aid procedures and national tax law, with potential impact across several EU Member States.
Check out our full MFA Insight attached for a detailed legal overview.
