Interesting twist on countering tax avoidance
In a recent press release the European Parliament gave an update on its position where a member state has given tax breaks that amount to illegal state aid and the Commission requires repayment of the tax foregone. The intention is that rather than paying the tax over to the country that gave the relief it should instead go either to the member state(s) that suffered loss as a result of the tax planning or to the EU Budget(!).
You may recall that recent investigations in to favourable tax rulings include those for Starbucks (from the Netherlands), Fiat and Amazon (from Luxembourg) and Apple (from the Republic of Ireland). This should be interesting, in theory at least the UK could benefit form this as Apple and Starbucks could be said to have used the rulings to reduce UK tax.
Date: 22nd January, 2016
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