The European Commission has reached tax system of Belgium

The European Commission has started comprehensive examination of Belgium tax legislation, which allowed groups of companies severely reduce their tax burden in Belgium.

Such a possibility was available only to those companies, which has acquired so called decisions of tax departments on “excess profit”. The latter make it possible for multinational corporations to lower their tax burden in Belgium with the help of “excess profit” earned by multinational corporate structure.

The European Commission prejudices these provisions of Belgium legislations as contradicting the rules of The European Union about national assistance.

From the Belgium government’s point of view, there is no reason to consider these provisions to be wrong as they promote arm’s length principle, established by OECD. While the European Commission is not sure about the accuracy of the way the Belgium government understands mentioned principle. Thus, the aim of circumscribed examination of the European Commission is to find evidence of its position.

Belgium is already the fourth country which attracts the European Commission’s attention after Holland, Luxembourg and Ireland.

The source: http://europa.eu/rapid/press-release_IP-15-4080_en.htm?locale=en