The probe follows a complaint from Vtesse Networks, which claimed BT and Hull-based Kingston Communications receive preferential tax treatment.
A statement, issued by the Commission with the launch of the investigation, said the UK ‘applies a certain asset valuation method to BT and Kingston, while it applies other methods to their competitors’.
A Department of Trade and Industry investigation into the same issue is already underway, and a statement said it was confident the EC would find no grounds for complaint.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states