Incoming antitrust head promises action on tax deals
Europe’s incoming antitrust chief has promised a tough line on state-subsidised tax avoidance, saying she will “send a signal” with the speedy conclusion of probes into deals with the likes of Apple, Fiat and Starbucks.
At her European parliament confirmation hearing to become EU competition commissioner, Margrethe Vestager described the landmark state-aid cases as “a high priority” that would help ensure companies big and small paid their taxes in full.
The commission has already confronted Ireland over its tax deal with Apple, the Netherlands over its arrangements with Starbucks, and Luxembourg for offering what it believes are favourable terms to Fiat.
If proven, the in-depth investigations could in total lead to billions of euros of unpaid taxes being recouped, according to people familiar with the cases. But complex state aid investigations have in the past dragged on for many years.
“People are offended by some of the things that they see and read because they appreciate when people pay the tax that they are supposed to pay,” Ms Vestager said, adding she hoped the conclusion of the cases was prompt “not only to deal with the matter but to send a signal”.
As well as pointing to potential problems with tax rulings – where countries clarify tax laws for individual countries – Ms Vestager also highlighted her concern with tax structures that favour big companies.
“Large companies should not be allowed to organise themselves in way that allows them to pay much less tax than other companies,” she added to journalists at the end of her hearing. “We will pursue the investigations, make sure they are substantial, and hopefully win the cases.”
Source: FT- Incoming antitrust head promises action on tax deals
