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Luxembourg: European Commission threatens nation in tax probe

 |  March 24, 2014

The European Commission has ordered Luxembourg to hand over documentation regarding tax practices, threatening the nation with legal action, as the authority continues an antitrust investigation into various tax policies.

The regulator is reportedly probing intellectual property tax rules, as well as policies concerning taxes for individual companies, and whether the rules align with competition law. While the investigation concerns rules throughout the EU, reports say the Commission zeroed-in on Luxembourg Monday after the nation “failed to adequately answer previous requests for information,” the Commission said.

The nation now has one month to hand over the necessary information, or the authority could refer Luxembourg to the European Court of Justice.

According to reports, the EU nation enacted new tax legislation in 2008 that allows up to 80 percent in tax breaks from profits made from licensing patents.

Full Content: Wall Street Journal

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