Strategizing Multinational Tax Risks

In the context of State Aid, aggressive tax planning, tax avoidance and competition for a country’s fair share of tax, the European Commission has broadened its earlier request for taxpayer rulings to include all tax rulings of all Member States from 2010 to 2013.  This initiative introduces additional transparency into the ruling practice of Member States.

Most importantly, the tax cost for denial of tax benefits for previously issued rulings is incurred by the respective companies, not the Member States.  MNE’s can participate, directly and/or indirectly, into the process if such rulings are formally investigated.  A link to the press release is attached for reference:

http://europa.eu/rapid/press-release_IP-14-2742_bg.htm?locale=FR

This initiative should be monitored by all MNE’s, supplemented by coordinating a list of all such rulings that would be requested for additional review and reference.