GovernanceRegulationEU Scrutinises Belgium Tax Deals for Multinationals

EU Scrutinises Belgium Tax Deals for Multinationals

The European Union (EU) has opened an investigation into tax breaks that Belgium may be granting multinational corporations (MNCs) in the latest of its reviews of ‘sweetheart’ tax deals across Europe.

Competition commissioner Margrethe Vestager said that Belgium’s system was believed to breach EU rules on unfair state aid and that it “appears to grant substantial tax reductions only to certain multinational companies.

“If our concerns are confirmed, this generalised scheme would be a serious distortion of competition unduly benefitting a selected number of multinationals,” she said. Vestager did not name any specific companies.

The European Commission (EC), the EU’s executive arm, said the Belgian tax provision allows companies to reduce tax by registering “excess profits” that allegedly result from the advantage of being part of a multinational group.

Last month EU regulators charged Luxembourg with giving illegal tax breaks to Amazon. The EU is also investigating into tech giant Apple’s tax deals with Ireland, coffee shop chain Starbucks with the Netherlands and Italian carmaker Fiat, also with Luxembourg.

Related Articles

India-US trade corridor: Accelerating growth with reverse factoring

Deals & Markets India-US trade corridor: Accelerating growth with reverse factoring

1m Vinod Parmar
China’s regulatory changes stimulate international interest

Asia Pacific China’s regulatory changes stimulate international interest

2m Michael McCaw
“Destroy or democratise” – how Open Banking will impact connectivity

Banking “Destroy or democratise” – how Open Banking will impact connectivity

2m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

2m Victoria Beckett
Money market reforms: Navigating LVNAV, CNAV and VNAV

EEA Money market reforms: Navigating LVNAV, CNAV and VNAV

3m Victoria Beckett
The Challenge of Building and Maintaining a Central Treasury Operation in a Decentralized Company

EEA The Challenge of Building and Maintaining a Central Treasury Operation in a Decentralized Company

3m BELLIN
The Treasury Challenge of a Post-Merger Integration

EEA The Treasury Challenge of a Post-Merger Integration

3m BELLIN
The Challenge of Integrating Worldwide Subsidiaries into one TMS

Baltics The Challenge of Integrating Worldwide Subsidiaries into one TMS

3m BELLIN