The US oil company Exxon Mobil sued to the European Union for the so-called tax on extra profits, i.e. the exceptional gains made by companies that produce or sell energy, gas or electricity with the rise in prices due to the energy crisis and the invasion of Ukraine. According to Exxon Mobil, the European Union has acted beyond the limits of its authority, with a tax that is counterproductive because it discourages investments in Europe.
The tax on extra profits was decided last September and it should enter into force next December 31: Provides a levy of at least 33 percent on any 2022 and 2023 taxable profits that exceed average profits earned between 2018 and 2021 by at least 20 percent. Exxon Mobil is one of the largest providers of oil in Europe and last October it declared a quarterly profit of about 20 billion dollars. According to the company’s chief financial officer, the tax introduced by the union will cost the group about 2 billion dollars. The lawsuit filed by Exxon Mobil will be evaluated by the General Court of the European Union.
