Time and again, the EU calls on Member States to recover money from large corporations. This time it hits the UK. The Brussels tax experts have recalculated for the period from 2013 to 2018 and are convinced that London has unduly spared some companies. Specifically, it is about a tax exemption introduced in 2013 for intra-group financing, which Brussels does not consider compatible with EU law.
Tax benefits for large companies
Normally, UK tax authorities can tax profits shifted abroad. However, due to exceptions, companies were able to provide funding to subsidiaries abroad and pay little or no tax on profits from these businesses. However, the EU Commission did not say who benefited or how much.
Apple, Amazon, Starbucks
Britain joins the list of EU countries that, at the behest of Brussels, reclaim money from multinational corporations for illegal tax breaks. So far, in this context, especially US companies in the focus of the investigation.
For example, Apple had to pay substantial sums in Ireland, Amazon in Luxembourg and Starbucks in the Netherlands. The Commission is currently investigating, among other things, the furniture chain Ikea for its tax practices in the Netherlands.
