His comments follow the completion of an investigation by his officials into whether these regimes broke EU state aid rules, which are designed to ensure that national governments do not unfairly subsidise businesses in their own jurisdictions.
These inquiries have concluded that the Belgian coordination centres scheme and the Dutch International Financing Activities scheme are actually illegal and so Monti wants the full College of Commissioners to ask the two low country governments to abolish the tax breaks that they offer.
However, because the Belgian scheme was initially approved by the Commission in 1984 and regarding the Dutch system ‘the beneficiaries had legitimate reasons to believe that the scheme was not illegal,’ Monti wants a transitional period to be ordered for the phasing out of the schemes.
Meanwhile Commission officials have decided that the Irish Foreign Income scheme does not entail the payment of illegal subsidies to benefiting companies.
Said Monti: ‘These decisions are part of an ambitious strategy against harmful tax competition, which the Commission launched in 1997 upon my proposal.’
HMRC has won its tenth successive case against tax avoidance schemes promoted by NT Advisors. The Court of Appeal has ruled that NT ... read more
HMRC is continuing to ramp up the number of raids on premises it carries out as part of criminal investigations, searching 761 properties in the last year
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
Since the release of HMRC’s plans for digital tax reforms, many have agreed with the call for a delay