EU orders Belgium to claw back extra taxes from major firms

[webfact]

EU orders Belgium to claw back extra taxes from major firms



BRUSSELS: -- EU regulators have told Belgium to claw back 700 million euros in extra taxes after they ruled 35 multinationals had benefitted from an illegal tax break.

The European Commission said that Belgium’s so-called ‘excess profit system” allowed only a few large companies to get a tax discount.

Under the Belgian scheme, multinationals could reduce their corporate tax bases by between 50-90 percent due to profits arising from, for example, economies of scale, which were not liable to tax in Belgium

Officials said this distorted the EU’s single market; some journalists asked whether this means Belgium should be considered a tax haven.

“I don’t really know what is a tax haven is. To me a tax haven is a place where everyone pay their share. In that respect I am not quite sure we are in a tax haven yet, but we are trying, actually we are doing our best,” said Margrethe Vestager
EU commissioner for competition.

“National tax authorities cannot give any company, however large, however powerful an unfair competitive advantage compared to others,” she said. “This scheme puts smaller competitors at an unfair disadvantage.”

Belgian Finance Minister Johan Van Overtveldt said the government could still appeal the decision.

“The consequences for the companies involved could be major, and the recovery extremely complex,” he was quoted by the Associated Press as saying.

The Commission is also investigating Amazon in Luxembourg and Apple in Ireland.

In October, it told Fiat Chrysler and Starbucks to recover between 20 and 20 million euros linked to illegal tax deals with the Dutch and Luxembourg authorities.


-- (c) Copyright Euronews 2016-01-12

[NeverSure]

Why did so many seemingly intelligent countries give up their national sovereignty to this EU? It's not only going to break them financially, but the open borders are going to overwhelm their traditional citizens.

Good bye Europe.

[ameadi]

Your horizon is very short. Connect your brain Nelson

[Boatfreak]

Why did so many seemingly intelligent countries give up their national sovereignty to this EU? It's not only going to break them financially, but the open borders are going to overwhelm their traditional citizens.

Good bye Europe.

Thanks to the EU for policing, otherwise all multinationals would have a tax free heaven while the rest of the people work their asses off to pay taxes.

[NeverSure]

Why did so many seemingly intelligent countries give up their national sovereignty to this EU? It's not only going to break them financially, but the open borders are going to overwhelm their traditional citizens.

Good bye Europe.

Thanks to the EU for policing, otherwise all multinationals would have a tax free heaven while the rest of the people work their asses off to pay taxes.

Brainwashed.

If each country was responsible to only itself it could make its own rules. Many times corporations have been given tax breaks to encourage them to move in and create jobs. Then the economy improves and taxes are paid by the workers and at the cash register. Many people think that more jobs and more people paying taxes is a good thing.

If you absolutely hate corporations including the jobs they provide then this doesn't work for you out of your own prejudice. But if you look at the numbers, places who have enticed big corporations to move in and provide a lot of jobs have usually prospered.

Cheers.

[stevenl]

Why did so many seemingly intelligent countries give up their national sovereignty to this EU? It's not only going to break them financially, but the open borders are going to overwhelm their traditional citizens.

Good bye Europe.

Thanks to the EU for policing, otherwise all multinationals would have a tax free heaven while the rest of the people work their asses off to pay taxes.

Brainwashed.

If each country was responsible to only itself it could make its own rules. Many times corporations have been given tax breaks to encourage them to move in and create jobs. Then the economy improves and taxes are paid by the workers and at the cash register. Many people think that more jobs and more people paying taxes is a good thing.

If you absolutely hate corporations including the jobs they provide then this doesn't work for you out of your own prejudice. But if you look at the numbers, places who have enticed big corporations to move in and provide a lot of jobs have usually prospered.

Cheers.

You're out of touch. This has nothing to do with job creation or moving, only with a peprer trail through a country to reduce the taxes paid by the big corporations. On multiple fronts this issue is finally being tackled now, excellent.

[wabothai]

Why did so many seemingly intelligent countries give up their national sovereignty to this EU? It's not only going to break them financially, but the open borders are going to overwhelm their traditional citizens.

Good bye Europe.

What is your agenda NS? The ailing US and Europe should join forces to tackle the problem. Europe gone, you gone.

[FangFerang]

Why did so many seemingly intelligent countries give up their national sovereignty to this EU? It's not only going to break them financially, but the open borders are going to overwhelm their traditional citizens.

Good bye Europe.

Thanks to the EU for policing, otherwise all multinationals would have a tax free heaven while the rest of the people work their asses off to pay taxes.

Brainwashed.

If each country was responsible to only itself it could make its own rules. Many times corporations have been given tax breaks to encourage them to move in and create jobs. Then the economy improves and taxes are paid by the workers and at the cash register. Many people think that more jobs and more people paying taxes is a good thing.

If you absolutely hate corporations including the jobs they provide then this doesn't work for you out of your own prejudice. But if you look at the numbers, places who have enticed big corporations to move in and provide a lot of jobs have usually prospered.

Cheers.

Yeah. Right. Prospered when? When banks collapsed under a completely wild west system of unrestraint? You deny your own antecedent. Almost like trying to crow George the Butcher Bush's remarks just before he bailed out the banks.

"I like markets. They keep things going <sic>".....

[Baerboxer]

Why did so many seemingly intelligent countries give up their national sovereignty to this EU? It's not only going to break them financially, but the open borders are going to overwhelm their traditional citizens.

Good bye Europe.

Because it was set up as a common market, with lots of good ideas and benefits for members.

Then come the PC mob, the loony liberal left (not normal liberals and left wingers but much more extreme) and the bureaucrats who slowly but surely moved it more and more to a centrally controlled super state, choked with bureaucracy and rules, and whose wish is for a multicultural federal state, with all the vestiges of culture, religion and history removed and replaced.

Certain countries were happy to go along with this as it allowed them the opportunity to profit from it by taking out much more than they ever put in and feed the corruption and laziness in their own countries.

Now people are waking up and actually starting to do something about it. Maybe too late - we shall see.

[gerry1011]

The day large companies such as AB-InBev, the world's biggest beer brewer, leave Belgium to friendlier (tax) skies... those who will cry fool will be the ones who wanted to tax them more.

Such companies can easily move their head office to the country that offers them then best business environment.

[Prbkk]

Starbucks yet again. A miserable corporate citizen posing as something clean, green and fresh. Dreadful company, lousy coffee and more fool those who subsidise its shareholders...because it gives NOTHING in those countries in which it operates

[chuckd]

Why did so many seemingly intelligent countries give up their national sovereignty to this EU? It's not only going to break them financially, but the open borders are going to overwhelm their traditional citizens.

Good bye Europe.

Thanks to the EU for policing, otherwise all multinationals would have a tax free heaven while the rest of the people work their asses off to pay taxes.

Brainwashed.

If each country was responsible to only itself it could make its own rules. Many times corporations have been given tax breaks to encourage them to move in and create jobs. Then the economy improves and taxes are paid by the workers and at the cash register. Many people think that more jobs and more people paying taxes is a good thing.

If you absolutely hate corporations including the jobs they provide then this doesn't work for you out of your own prejudice. But if you look at the numbers, places who have enticed big corporations to move in and provide a lot of jobs have usually prospered.

Cheers.

Yeah. Right. Prospered when? When banks collapsed under a completely wild west system of unrestraint? You deny your own antecedent. Almost like trying to crow George the Butcher Bush's remarks just before he bailed out the banks.

"I like markets. They keep things going <sic>".....

I hate to try and put facts in a conversation so filled with venom, but "George the Butcher Bush's" bank bailout was actually repaid in full and turned a profit for the federal government.

I like private enterprise. Socialism is what stinks.

---------------------------------------------------------------------

Bank Bailout Returns 8.2% Beating Treasury Yields

Yalman Onaran and Alexis Leondis

October 20, 2010 — 9:55 PM ICT

The U.S. government’s bailout of financial firms through the Troubled Asset Relief Program provided taxpayers with higher returns than yields paid on 30-year Treasury bonds -- enough money to fund the Securities and Exchange Commission for the next two decades.

The government has earned $25.2 billion on its investment of $309 billion in banks and insurance companies, an 8.2 percent return over two years, according to data compiled by Bloomberg. That beat U.S. Treasuries, high-yield savings accounts, money- market funds and certificates of deposit. Investing in the stock market or gold would have paid off better.

http://www.bloomberg.com/news/articles/2010-10-20/bailout-of-wall-street-returns-8-2-profit-to-taxpayers-beating-treasuries

[Jonmarleesco]

'“I don’t really know what is a tax haven is. To me a tax haven is a place where everyone pay their share. In that respect I am not quite sure we are in a tax haven yet, but we are trying, actually we are doing our best,” ...' To create a tax haven?

So, will the UK be next in line? There are enough multi-nationals gaming the system there. Not to mention the likes of HSBC, and its tax evasion scheme in Switzerland.

[Ulic]

'“I don’t really know what is a tax haven is. To me a tax haven is a place where everyone pay their share. In that respect I am not quite sure we are in a tax haven yet, but we are trying, actually we are doing our best,” ...' To create a tax haven?

So, will the UK be next in line? There are enough multi-nationals gaming the system there. Not to mention the likes of HSBC, and its tax evasion scheme in Switzerland.

I don't know what a tax haven is but I know what a Patriot is, someone who pays there taxes. There are not that many Patriots in Greece.

[Boatfreak]

'“I don’t really know what is a tax haven is. To me a tax haven is a place where everyone pay their share. In that respect I am not quite sure we are in a tax haven yet, but we are trying, actually we are doing our best,” ...' To create a tax haven?

So, will the UK be next in line? There are enough multi-nationals gaming the system there. Not to mention the likes of HSBC, and its tax evasion scheme in Switzerland.

I don't know what a tax haven is but I know what a Patriot is, someone who pays there taxes. There are not that many Patriots in Greece.

Why Greece? The Netherlands seems to be the tax heaven of Europe http://www.theguardian.com/business/2011/oct/19/tax-avoidance-in-netherlands-becomes-focus-of-campaigners

http://www.iamexpat.nl/read-and-discuss/expat-page/news/netherlands-tax-haven-fortune-500-companies but thet surely enjoy blaming the little Greek pensioner for paying to little taxes.

[Boatfreak]

Why did so many seemingly intelligent countries give up their national sovereignty to this EU? It's not only going to break them financially, but the open borders are going to overwhelm their traditional citizens.

Good bye Europe.

Thanks to the EU for policing, otherwise all multinationals would have a tax free heaven while the rest of the people work their asses off to pay taxes.

Brainwashed.

If each country was responsible to only itself it could make its own rules. Many times corporations have been given tax breaks to encourage them to move in and create jobs. Then the economy improves and taxes are paid by the workers and at the cash register. Many people think that more jobs and more people paying taxes is a good thing.

If you absolutely hate corporations including the jobs they provide then this doesn't work for you out of your own prejudice. But if you look at the numbers, places who have enticed big corporations to move in and provide a lot of jobs have usually prospered.

Cheers.

Jobs with a salary so low that the workers can't afford to buy the products they made. Remember it is not the corporations who create the jobs it is us the buyers, no buyers, no corporates.

[Thorgal]

That's economic suicide for a small country like Belgium.

If multinationals have to pay all together 700M eur, most of them will leave.

Those multinationals have been attracted with tax reduction to invest and deal from Belgium.

Some of them : volvo, audi, basf, caterpillar, ...

Edited February 11, 2016 by Thorgal

[MaeJoMTB]

If you absolutely hate corporations including the jobs they provide then this doesn't work for you out of your own prejudice. But if you look at the numbers, places who have enticed big corporations to move in and provide a lot of jobs have usually prospered.

Cheers.

Nothing worthwhile is ever accomplished by big corporations.

They exist to enslave and extort the proletariat.

Big corporations don't create jobs, they destroy them.

[MaeJoMTB]

I don't know what a tax haven is but I know what a Patriot is, someone who pays there taxes. There are not that many Patriots in Greece.

I though a Patriot was something you fired at Arabs!

[manarak]

any supranational tax Laws are stupid.

multinationals should have the duty to have national accounting, i.e. income and expense pertaining to the country and be taxed according to local tax laws.

as things are with companies that import products at inflated prices because their "administrative center" is located in Luxembourg or Switzerland, I would just tax then a fixed percentage of imports regardless of effective profit, or a fixed % of their payroll or a fixed % of their profits, whatever is HIGHER.

[arjunadawn]

Not a tax expert and have zero adoration for corporate pirates but isn't the effort to "claw back taxes" no more than ex post facto laws? Either by that mechanism or threats, leverage, investigation, or intimidation they now seek taxes that were however disagreeable the result of their own policies. Again, I think its horrible that they evade taxes in accordance with the law but the problem is less the taxpayer than the tax authority. If a crime, ok. But I do not think that's what is happening here. Perhaps "not a tax expert" is why I miss this.