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EU: Vestager braces for legal challenges to tax probe

By  |  December 15, 2014

The European Commission’s competition chief Margrethe Vestager is reportedly expecting legal challenges to her investigation into member states’ tax agreements with foreign companies.

Vestager spoke with reporters in Brussels on Monday to discuss the case, noting that “the case work has to be very, very thorough” and that the investigation must be legally airtight. The regulator added that she is expecting some national governments to challenge the probe.

The Commission is investigating the tax relationships between several foreign companies and Luxembourg, Ireland and the Netherlands on suspicion some tax breaks may constitute illegal state aid.

Luxembourg has already challenged The Commission’s demand for documents related to the case, though publically vowed to remain transparent in the matter last week.

There is no doubt, Vestager said, that some companies received a tax ruling by EU governments that offered reduced rates. Rather, “it’s a question of whether it’s selective.”

Full content: Businessweek

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