The tax reduction condition was subjected to the capacity to provide the minimum guarantee fund of € 2.3 million, for captive insurance undertakings, and € 3.2 million for captive reinsurance undertakings with the possibility of reduction to an amount of at least € 1.1 million (if the relevant supervisory authority permits). According to the EFTA Court (Liechtenstein, REASSUR AG, Swisscom RE AG v EFTA SA, E-4/6/7-10), this means that the option of forming a captive insurance company was not open to any undertaking (§§ 78-79). And, therefore, this was a State aid.
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