All EU member states requested to release complete tax figures

By in

All EU member states have now been drawn into the European Commission’s investigation into the use of tax rulings to offer preferential tax treatment to multinational companies. The EC has extended its enquiry into tax rulings practice under EU state rules to the entire EU 28 member states.
All EU member states have now been drawn into the European Commission’s investigation into the use of tax rulings to offer preferential tax treatment to multinational companies. The EC has extended its enquiry into tax rulings practice under EU state rules to the entire EU 28 member states.

This is part of the EC’s wide-ranging investigation into the use of aggressive tax planning by multinationals, which started when probes looking into Fiat in Luxembourg, Apple in Ireland and Starbucks in the Netherlands. There is also an on-going probe into the tax affairs of large companies in Belgium, although the outcome has not yet been published, while online giant Amazon’s arrangements in Luxembourg are also being investigated.

The EC proposes to ask all member states to provide information about their tax ruling practice, in particular to confirm whether they provide tax rulings, and if they do, to request a list of all companies that have received a tax ruling from 2010 to 2013.

A statement from the EC detailed ‘A number of member states seem to allow multinational companies to take advantage of their tax systems and thereby to reduce their tax burden.’ This expansion of the enquiry is said to be fully in line with the recent calls for more transparency of tax rulings, in particular the initiative announced by EC President Jean-Claude Juncker, the former Prime Minister of Luxembourg, on the upcoming legal proposal about the automatic exchange of information on tax rulings.