28/08/17

US Treasury has criticised the European Commission investigation of corporate tax breaks

The US Treasury has criticised the European Commission’s investigation of corporate tax breaks, stating that: “The Commission is charting a course that sets aside years of multilateral efforts,” reports IFC Forum.  

It added: “The Commission’s path runs the risk of the EU being perceived as having used its unique structure to undermine and reverse international progress.”

In a 25-page paper released on Wednesday, the US contends that the EU has made an “unforeseeable departure from the status quo” and is acting inconsistent with international tax norms.

EU officials have said repeatedly that they are merely following their own laws against unfair competition, which require them to recover improper “state aid” to companies in the form of selective tax breaks provided by EU member countries.

In response to the Treasury report, a European Commission spokeswoman said on Wednesday that it is following a “standard feature” of EU law and applying it indiscriminately against companies regardless of where they are from. The spokeswoman said officials remain “available to offer all necessary further clarifications” to the US.