European Union probes British scheme shielding multinationals from tax avoidance rules

Announcing the in-depth investigation, Ms Vestager warned "rules targeting tax avoidance can not go against their objective and treat some companies better than others".

He said the investigation was part of an agreed strategy to ensure "all companies, whether they are big or small, pay their fair share of tax where their profits are earned".

European Competition Commissioner Margrethe Vestager holds a news conference at the EU Commission's headquarters in Brussels, Belgium October 4, 2017.

European Commissioner Margrethe Vestager said the inquiry would investigate whether the United Kingdom scheme allowed some multinationals to pay less tax than other companies in breach of EU rules.

"In particular, EU competition law, including EU State aid rules, continue to apply in full to the United Kingdom and in the United Kingdom until it is no longer a member of the EU", the commission said in a statement.

The crackdown comes after the EU Commission announced earlier this year that it was taking Ireland to the European Court of Justice for failing to recover 13 billion euros (£11.5 billion) in tax from United States tech giant Apple.

The European Commission today launched an investigation into whether a British scheme shielding multinational companies from tax avoidance rule breaks EU competition law.

Launching the inquiry, the European Commission said such financing income was often used as "a channel for profit-shifting" by multinationals.

A spokesman for Britain's Treasury said its rules prevented profits from being artificially diverted overseas to avoid tax and defended the financing exception, introduced by former finance minister George Osborne.

France has a led a major push in the European Union to increase taxes on mega tech firms such as Google and Facebook, but met with resistance at a summit last week from the likes of Ireland and Luxembourg, which have become major centres for big tech firms.

It also handed Amazon a bill of around 250 million euros (£221 million) in back taxes after stating that the firm's sweetheart tax deal with Luxembourg broke state aid rules.

Ms Vestager has been involved in bringing a number of high-profile cases targeting the tax benefits granted to some companies, including ordering Ireland to recover up to 13 billion euros (£11.6 billion) in unpaid taxes from Apple.

Like this


26 October 2017
Google Faces Pixel 2 Disaster
Users pre-booking the device on Flipkart on or before October 31 will get Sennheiser Bluetooth earphones worth Rs 11,990 for free. Google is investigating reports that review units of its new Pixel 2 XL smartphones have problems with their display screens.

26 October 2017
COPO Debuts With New 302 Engine And Hot Wheels Package
It has been modified for drag racing with a shorter-stroke crankshaft for high-rpm capability and durability. As with the previous editions, 2018 COPO Camaro models are designed for NHRA's Stock Eliminator classes.

26 October 2017
The ING Groep NV Raises it position for Raytheon Co. (RTN)
PNC Financial Services Group Inc. owned about 0.36% of Raytheon worth $170,584,000 at the end of the most recent reporting period. Moreover, Manning Napier Advisors Limited Company has 0.08% invested in Raytheon Company (NYSE:RTN) for 59,716 shares.

26 October 2017
Julian Assange Says WikiLeaks Rejected Request From Trump-Linked Firm
Between 29 July and 12 December the Trump campaign paid Cambridge Analytica $5.9m, according to the Federal Election Commission. It's not clear if the emails in question were ever obtained by WikiLeaks or any other entity; they have never been published.

26 October 2017
Analysts See $1.45 EPS for United Parcel Service, Inc. (UPS)
Ullmann Financial Group Inc. purchased a new stake in United Parcel Service during the first quarter valued at about $126,000. Finally, Winslow Evans & Crocker Inc. boosted its position in United Parcel Service by 261.3% during the second quarter.

26 October 2017
Mental health results in mass job losses
Just 11% of employees surveyed said they discussed a recent mental health problem with their line manager, with over half saying they wouldn't feel comfortable doing so.

26 October 2017
Rowe Price Group, Inc. Declares Quarterly Dividend of $0.57 (TROW)
Rowe Price Group Inc (NASDAQ: TROW ). (NASDAQ: TROW ) announced a quarterly dividend on Wednesday, October 25th, RTT News reports. A number of hedge funds and other institutional investors have recently made changes to their positions in the stock.

26 October 2017
SC reserves order on JAL plea for hiving off toll collection
The apex court, however, extended the time from October 27 to November 5 for the company to deposit Rs 2000 crore. "We are not inclined to entertain the application for modification of the order dated 11th September, 2017".

26 October 2017
US Vice President Pence to visit Israel in December
He also said US policy has greatly contributed to the challenges Christians face in the Middle East. Pence said that driving that persecution is "radical Islamic terrorists".

26 October 2017
Imran Khan tenders apology in ECP in contempt of court cases
Talking to reporters outside the ECP, Imran Khan said he was "glad" that the contempt proceedings against him had ended. He said that his criticism over the Election Commission was meant to make the institution transparent and trust able.