EU declares Belgium tax scheme for multinational companies illegal

Advertisement - Continue Reading Below

As long as taxes exist, people will try their best to pay as little as legally possible. This is even truer for companies, where taxes can eat into funds that would otherwise be profits. The issue of tax shelters and ways around the system for companies has been a big focus of the 2016 primary debates in America, in particular on the Democratic side. Recent news out of Europe shows this is not just an issue isolated to America.

 

A tax loophole was recently closed by the European Commission in Belgium, resulting in approximately 700 million Euros having to be paid by multinational companies. Previously, there was an “excess profit” tax policy in place within Belgium, which gave multinational companies a tax break based on the notion that a smaller company would not have made that level of profit. With this rule being reversed, Belgium will need to recover the tax revenue that was lost. Perhaps more importantly, the reversal will impact business in Belgium moving forward. The ruling is not without merit; it’s estimated that the tax break allowed some companies to keep 50%-90% of their profits tax free.

 

For its part, the Belgian government said this ruling was expected, but they may appeal the decision in court. It’ll be interesting to see how this is handled moving forward in terms of laws, and what impact it will have on their local economy. It’s estimated that most of the companies affected were from Europe, with at least 35 being asked to repay their part of the lost tax amounts. 

Advertisement - Continue Reading Below

Most Popular

  • Three independent candidates for US President

    The U.S. elections feature the two major political parties: the Democratic Party and the Republican Party. Besides these two, there are other parties dubbed “Third Parties” due to their minority standing. Independent candidates are those who run for president without any formal…

  • Scots Angry over Trump’s View of Brexit

  • What is Trump's stance on combating terrorism?

Most Viewed

  • Revealing Info on How the Clinton's Made Their Money

    On May 17, 2016, the personal financial disclosure of Hillary Clinton revealed that she earned over $5 million in royalties from a 2014 memoir and around $1.5 million for her speeches in 2015. Mrs. Clinton's camp decided to reveal info on how her family made their money to stand in good stead…

  • Trump refuses to act presidential

  • Do Cruz and Kasich have a pact?

From the blog

  • Former Illinois Governor Blagojevich sentenced

    Rod Blagojevich, former Illinois governor, was sentenced on Tuesday, August 9. He was charged with a variety of corruption acts including trying to sell Barack Obama´s Illinois US Senate chair. The sentence was first announced as 14 years but was upheld after Blagojevich’s lawyer’s…

  • Punta Gorda, Florida is Scene of Deadly Mishap.

  • Jury Recommends Life Sentence in Andrew Schmuhl Case

  • Gary Oliva Arrested in Ramsey Child’s Murder

  • Ex-lawyer guilty of soliciting murder of his manager

}