BELGIAN ‘EXCESS PROFITS’ TAX BREAK BLOCKED IN IMPORTANT TAX RULING CASE
January 1st, 2016
THE EUROPEAN Commission has effectively declared illegal under European Union (EU) a tax break for multi-nationals operating in Belgium enabled them to discount profits on their Belgian tax returns. This ‘excess profit’ tax ruling system assumed that Belgian wings of multinationals made extra profits in Belgium by benefiting from economies of scale generated by activities in other countries. These assumed ‘excess’ profits were discounted from their Belgian tax returns, reducing their tax liability by between 50% and 90% in some cases. The Commission has ...
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