EU widens tax probe into MNCs: source
Print Edition
THE European Commission is widening its probe into how multinationals use countries such as Luxembourg to cut their tax bill, an official with knowledge of the matter said yesterday.
Last month, the commission warned Ireland, another European Union country that offers companies offshore tax status, that it could investigate more companies beyond Apple Inc as part of its probe into European tax practices.
“The commission continues to gather information on the tax practices of member states ... and this might lead to new formal investigations,” said the official, who declined to be named because of the sensitivity of the matter.
“It would be premature to speculate on whether ... formal investigations could be opened about any specific company.”
Luxembourg is used by multinationals including Amazon, building equipment maker Caterpillar and UK mobile telecoms group Vodafone.
Pushed by France and Germany, Brussels is keen to rein in what it sees as unfair tax competition across the bloc.
If the commission can prove countries such as Luxembourg and Ireland agree tax treatments that diverge from international rules, it could deem any corporate tax savings as a form of subsidy that must be halted or even repaid.
In a strong statement in March, the commission, the EU executive, chastised Luxembourg, saying it had “failed to adequately answer previous requests for information” and ordered it to outline many details of its tax system.
The finance ministry in Luxembourg was not available for comment yesterday but in June it said it had “doubts about the legality of certain aspects of the European Commission’s information requests.”
Corporate profit-shifting has come under the international spotlight in recent years.
Tax advisers say Luxembourg has helped attract over 40,000 holding companies.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
