EU: Watchdog moves to curb tax avoidance strategies by multinational cos’

The European Commission confirmed Thursday it initiated an informal probe into tax rulings for multinational companies under state aid law and is now seeking information on the matter. The Financial Times reported Ireland, Luxembourg and the Netherlands have all been the subject of requests for information regarding the matter; a spokesman for EU Commissioner Joaquin Almunia confirmed the reports, stating the watchdog “is simply gathering information on tax rulings.”

According to reports, as the EU works to reduce debts and increase revenue, company taxes have come under the watch of the Commission. Calls to crack down on multinational companies’ strategies to avoid taxes have also increased.

Earlier this year, the Organization for Economic Cooperation and Development offered a blueprint for such a crackdown. Companies like Google Inc., Apple Inc. and Yahoo! Inc. are named in reports for using such strategies.

The Financial Times reported Starbucks and Apple Inc. were among the companies requested for information regarding tax policy.

Full Content: Businessweek

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