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Commission launches probe into UK tax exemption for multinationals - Euractiv
The European Commission decided on Thursday (26 October) to open an in-depth investigation into the UK exemptions granted to multinationals to protect them from tax avoidance rules.

This is the latest effort by Competition Commissioner Margrethe Vestager against tax erosion and tax avoidance practices, one of the Commission's top priorities since 2014.

The executive will look into whether the UK allowed corporations to pay less taxes in their territory by protecting them from anti-tax avoidance rules.

"Rules targeting tax avoidance cannot go against their purpose and treat some companies better than others," Vestager said.

"This is why we will carefully look at an exemption to the UK's anti-tax avoidance rules for certain transactions by multinationals," she added in a statement.

Around 19 member states have Controlled Foreign Company (CFC) rules, which allow authorities to prevent companies from using subsidiaries in tax havens to avoid paying taxes in their territory.

In the UK, the rules permit the tax authorities to reallocate all profits shifted to these offshore jurisdictions back to their UK parent company to comply with the tax regime.

This will have a few people foaming at the mouth.

by Bernard on Thu Oct 26th, 2017 at 06:52:39 PM EST

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