EU widens tax investigation into multinationals

EU widens tax investigation into multinationals

It’s of concern to authorities in the US as an increasing number of our biggest companies are looking to sidestep domestic tax rates by moving their tax base to lower-tax jurisdictions. The European Union are also concerned, but from a slightly different angle. Member states, Luxembourg and Ireland have been increasingly popular locations for multinationals over recent years, thanks to their low corporate tax rates, but an investigation by the European Commission is tasked with finding out if there are unfair deals being done and it now looks like it will be widened. Luxembourg has already been accused of not providing information requested by the Commission and the country has questioned the legality of the information request. Amazon and Apple are among the high profile companies that could be forced to refund money to the EU if countries are found to have allowed unfair tax discounts. Read the full story.