The scheme reduced the corporate tax base of the companies by between 50% and 90% to discount for so-called ‘excess profits’ that allegedly result from being part of a multinational group. According to the Commission, this tax scheme derogated from normal practice under Belgian company tax rules and the so-called ‘arm’s length principle’, and therefore infringes the EU state aid rules. At least 35 multinationals benefitted from the scheme. The Commission estimates the total amount to be recovered from these companies to be around €700 million. The Belgian tax authorities now have to determine what amount of tax has to be recovered from which companies.
© 2016 Courtesy of Houthoff Buruma – a member of the EACCNY