Due to perceived concerns about improper state aid that may have resulted from favorable tax rulings issued to certain multinational enterprises, the European Parliament set up a special committee to probe tax practices and deals for multinationals. This committee is being established as a result of on-going investigations into tax rulings granted by Luxembourg, Ireland, Belgium, and the Netherlands. Committee members have met several times to discuss their plans for a six month investigation.

What will the committee do?

In a March 9th meeting, the 45 member special committee discussed plans to:

• Look into EU Member State tax ruling practices back to January 1, 1991;
• Consider the transparency of tax rulings;
• Make objective visits to countries in question; and
• Examine ruling used by certain member states to allow multinationals to reduce their normal tax rate by localizing profits.

The committee met on March 30th in Brussels to discuss further action, and Commissioner for Taxation, Pierre Moscovici highlighted the importance of cracking down on unfair tax breaks, saying the committee will not be timid in approaching this issue.

To learn more about how the special committee’s work thus far, and the history behind the committee, read our article, “European Parliament’s Special Committee Meets to Examine EU Tax Ruling Practices”.

Questions? Contact any member of our Global Tax Services team.