NICOSIA, Cyprus -- The European Commission (EC) has launched an investigation in Ireland, Luxembourg and the Netherlands over their favourable tax rulings issued for the benefit of multinational companies.

The governments of the said countries are requested to give full details on their system of tax rulings and of the assurances given to certain companies. At the moment, the request is part of an informal investigation, but Brussels confirmed that a formal probe may commence depending on the results of the preliminary investigation, that could push the governments of Ireland, the Netherlands and Luxembourg to recoup the lost revenues from any unlawful tax deals.

The said three countries have to prove to the EC that they are not acting as tax havens by allowing tax avoidance structures that multinational corporations use to sidestep large tax payments around the world.

The EC’s request follows similar moves made at the G8 Summit in June 2013, where all members had agreed to give each other automated access to information on tax affairs of their residents; It should also be mentioned that at the G20 Leaders' Summit in September 2013, some members signed up to begin automatically sharing tax information that could prevent tax evasion.


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