(February 17, 2015) 

On February 17, 2015 an article titled: “Tax rulings: are member states unfairly helping multinationals to pay less tax?” was published on the website of the European Parliament. The purpose of the article seems to be to give some background information regarding the decision of the European Parliament to set up a special committee on tax rulings.

 

There are 2 paragraphs in the article as published on the website of the European Parliament that we would like to quote here.

 

First of all in the paragraph: “What is a tax ruling?” the article published on the website of the European Parliament states: “it’s a document issued by a tax authority, setting out in advance how a corporation’s tax will be calculated and which tax provisions will be used. They are perfectly legal and no-one is proposing to get rid of them. 

 

In the paragraph: “What’s the problem” the article states the following: “When drawing up tax rulings tax authorities have wide discretion. The Commission is worried that in some member states they are used to alleviate the tax burden of certain corporations, allowing them to pay less tax and thus giving them a competitive edge

 

if this is done in a selective manner (e.g. only for multinationals, but not for domestic firms), it could amount to state aid, which is prohibited.

 

Click here to be forwarded to the full text of the article as published on the website of the European Parliament.

 

 

Copyright – internationaltaxplaza.info

 

 

Stay informed: Subscribe to International Tax Plaza’s Newsletter!

 

 

Submit to FacebookSubmit to TwitterSubmit to LinkedIn
INTERESTING ARTICLES