Monday, January 11, 2016
European Union Declares Belgian Tax Breaks To Multinational Corporations Illegal
Belgian gave tax breaks to around 50 MNC's which have been declared illegal. The government will be required to demand payment of uncollected taxes from the the MNC's. The decision was based upon the concept of unfair competition. Providing tax breaks to MNC's was unfair to domestic competitors who did not receive the tax breaks. This could spread to other nations which provide similar tax breaks to MNC's. For example, Ireland is a tax haven for MNC's which find ways to locate their profits in Ireland even though Ireland is not the source of their revenue.