The European Commission (“EC”) has long sought to eliminate so-called harmful tax competition, which it sees as undermining the integrity of the internal market, fair competition and the fiscal sustainability of the Member States. Although the EU Member States remain sovereign in this area, over the years there have been numerous initiatives to tackle this problem at the EU level, such as attempts to introduce a ‘Common Consolidated Corporate Tax Base’, or the ‘Code of Conduct on Business Taxation’, under which Member States commit to eliminate regimes deemed to be harmful.
Following a number of media reports into significant tax reductions granted to some multinational companies, the EC has recently stepped up its efforts, this time using EU State aid rules. It has taken the exceptional step of creating within its Competition Directorate-General a ‘task-force’ dedicated to investigating national tax rulings which validate advantageous calculations of the taxable basis, based on transfer pricing arrangements. Competition Commissioner Almunia has made it clear that he means business...
Please see full alert below for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.