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              EU Shuts Down Belgium Tax Breaks for Multinationals

   by VOA News

   The European Commission ordered Belgium on Monday to recover more than
   $760 million in illegal tax breaks from dozens of multinationals, the
   EU executive's biggest move yet to crack down on tax avoidance by large
   companies.

   The Commission said Belgium's "excess profit" tax system, offered to
   some 35 multinationals, breached EU rules on state aid to companies and
   could enable them to reduce their tax bases by up to 90 percent. It
   said the same benefit was not granted to smaller firms, distorting
   competition.

   The Commission said it could not name the companies involved, but they
   are mostly European corporations and those companies would pay back
   most of the amount due.

   The Commission, which rules on EU competition issues, has faced
   accusations of bias in its investigations against non-EU companies,
   notably U.S. tech giants.

   Competition Commissioner Margrethe Vestager told a news conference
   Monday, "Belgium has given a select number of multinationals
   substantial tax advantages that break EU state aid rules. It distorts
   competition on the merits by putting smaller competitors who are not
   multinational on an unequal footing."

   "The European Commission has concluded that selective tax advantages
   granted by Belgium under its 'excess profit' tax scheme are illegal
   under EU state aid rules," Vestager said
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   [1]http://www.voanews.com/content/eu-shuts-belgium-tax-breaks-multinati
   onals/3140064.html

References

   1. http://www.voanews.com/content/eu-shuts-belgium-tax-breaks-multinationals/3140064.html