The European Commission has published its latest annual report on competition policy, covering the year 2016, in which it defends the use of state aid rules to counter tax rulings allowing multinational groups to reduce corporate taxes payable in certain member states.
The US was particularly critical of investigations involving Apple in Ireland, Amazon and Fiat in Luxembourg, and Starbucks in the Netherlands.
The report justifies action taken against selective tax advantages, saying: ‘If a few selected companies can avoid tax, it makes it hard for companies that do pay their share of taxes to compete on equal terms.’ It adds the Commission’s view that: ‘The state aid rules apply to tax exemptions just as much as to any other type of aid.’
The European Commission has published its latest annual report on competition policy, covering the year 2016, in which it defends the use of state aid rules to counter tax rulings allowing multinational groups to reduce corporate taxes payable in certain member states.
The US was particularly critical of investigations involving Apple in Ireland, Amazon and Fiat in Luxembourg, and Starbucks in the Netherlands.
The report justifies action taken against selective tax advantages, saying: ‘If a few selected companies can avoid tax, it makes it hard for companies that do pay their share of taxes to compete on equal terms.’ It adds the Commission’s view that: ‘The state aid rules apply to tax exemptions just as much as to any other type of aid.’
