Brussels, 13/06/2014 (Agence Europe) - The Luxembourg authorities regret the European Commission's decision to open in-depth investigations into the way three member states - Ireland, the Netherlands and Luxembourg - tax multinational companies and to launch infringement proceedings against Luxembourg for its refusal to supply information about some of its tax practices (see EUROPE 11098).
The Commission fears that the tax treatment provides selective advantages to specific companies in violation of EU state aid rules.
In a press release, Luxembourg's finance minister said on Thursday 12 June that he regretted that the two infringement proceedings opened by the Commission would act as a distraction from the reasons why the Luxembourg government lodged appeals for cancellation of the cases against it. He said the Commission had not provided any new evidence that could dispel the serious doubts about the legality of the requests for information and the extent of the European Commission's powers.
The Commission has several times pointed out that member states are required to supply information requested of them and that the Commission is bound by confidentiality rules vis-à-vis such information.
Luxembourg commented on the in-depth investigation into decisions about taxation of the company Fiat Finance and Trade that the Commission was not challenging the legal principles that allow the Luxembourg tax office to grant tax rulings upon request from taxpayers, and said it was confident that it would be able to provide proof that these tax rulings did not amount to unlawful state aid for the companies in question.
The Netherlands is also being investigated about its taxation of Starbucks, and stated: “The Netherlands will cooperate fully with the Commission. We have confidence that will be concluded in the end that there is no state aid and that the APA with Starbucks Manufacturing EMEA BV is in line with the OECD Guidelines”. (EL)