The Belgian political party Les Engagés has officially questioned the European Commission about the tax practices of the international company Meta in its country, according to a press release published on Friday 1 August.
According to the party, several sources claim that the majority of Meta’s Belgian income is channelled through Ireland, where the group benefits from a favourable tax regime (see EUROPE 13687/10). At the same time, operating costs - salaries, investments and services - remain recorded in Belgium, “artificial imbalance between revenues and expenses”.
Les Engagés ask the Commission whether it is aware of these income transfer practices, whether it intends to assess their compliance with European tax law and the principles of fair competition, and whether it intends to strengthen the rules to ensure that the digital giants pay tax where the value is actually created.
“It is time for action. This practice penalises European entrepreneurs, deprives Member States of vital public revenue, and fuels distrust in the European project. The Union must no longer tolerate such distortion at the heart of its internal market”, said Yvan Verougstraete, MEP and President of Les Engagés (Renew Europe). (Original version in French by Anne Damiani)