US: Vestager stands up for EU’s ruling on tax deals while in the US

In her first visit to the US since the Trump administration began, EU commissioner Vestager has used her time to defend the right of the European Commission to rule against countries who use selective tax deals to attract companies.

During her term last year the EU ruled against Apple’s tax arrangements with Ireland. Ms Vestager used her appearance at the American Bar Association to highlight the powers of the EU to rule on tax matters related to state aid.

On Friday in Washington, she told reported that while EU competition law drew extensively from the US system, there were differences – namely the ability of the EU to rule on the tax practices of member states when they are deemed to be anticompetitive.

“We have the same worries when it comes to how companies can harm competition, but we’re also concerned if governments undermine fair competition,” Ms Vestager said. “For us we have a double approach. Companies can harm fair competition but so can governments, and they can do that by giving money or privileges to just a few selected favourite companies.”

She said the EU treaties gave the commission the rules to tackle state aid in all its forms, including tax policy – something she said that did not have an equivalent elsewhere.

Full Content: Irish Times

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