Luxembourg to Impose Sanctions on Companies Operating in Blacklisted Jurisdictions

In attempts to fall back under the good graces of the EU and OECD; Luxembourg tax authorities have been keen to announce that they will impose sanctions against companies operating in jurisdictions designated by the European Union as non-cooperative for tax purposes.

Commencing from the 2018 financial year, Luxembourg resident companies will be required to state if they have entered into any business negotiations with related corporations in jurisdictions included on the EU blacklist, and must disclose details of such pending transactions on request in their annual tax returns going forward.