EU Begins State Aid Investigation of Belgian Excess Profits Ruling
Feb.03.2015 — Tax Analysts
Brussels-based partner, Dr. Salomé Cisnal de Ugarte, comments on the European Commission's recent announcement that is has opened an in-depth investigation into Belgian tax rulings that allowed multinational companies to reduce their Belgian taxes by claiming a deduction for excess profits that purportedly result from the "advantage" of being part of a multinational group. Cisnal de Ugarte says the commission's focus on Belgium isn't surprising, especially given the low effective tax rates that some multinational companies enjoy. "They often give very favorable tax treatment in Belgium," said Cisnal de Ugarte, "but it's too early to say whether [the program] is selective."