Germany: Finance minister shames domestic firms for Luxembourg tax deals

German Finance Minister Wolfgang Schaeuble spoke out against domestic companies that created subsidiaries in Luxembourg for the sole purpose of lowering their taxes, say reports.

In an interview published Saturday, Schaeuble said “the list of those that have institutions in Luxembourg with the aim of saving taxes is a Who’s Who of the German economy.” He reportedly added that other EU nations are also being harmed by tax avoidance schemes.

”This is a form of competition that is not right,” he said.

The practice continues to gain criticism throughout the EU as the European Commission investigates the possible anticompetitive effect of the tax agreements. Critics say the deals constitute illegal state aid.

The dispute has put European Commission President Jean Claude Juncker in the hot seat as some accused him of sanctioning these questionable tax agreements while he was the Prime Minister of Luxembourg. Some MEPs are now calling for his resignation.

As the investigation continues, Schaeuble has reportedly submitted proposals to the Commission pushing for common taxation rules across all EU states.

Full content: Reuters

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