Luxembourg will provide the European Commission with a list of taxpayers that received private tax rulings in 2010–2012 involving cross-border dealings, as well as a list of the beneficiaries of its intellectual property regime, Prime Minister Xavier Bettel said December 18.
The information had been requested by the Commission in connection with a state aid investigation into Luxembourg’s private rulings practice and IP regime, but Luxembourg had fought the disclosures, bringing actions in the European courts in April to annul Commission decisions.
Bettel said that Luxembourg decided to drop its challenge, which was due to be argued in court on January 8, because of the Commission’s recent announcement that it would investigate the ruling practices of all EU states and in the light of a planned EU directive on the mandatory automatic exchange of information on tax rulings. Luxembourg supports exchange of tax rulings.
“Luxembourg’s decision to provide the Commission with the list of the tax rulings issued by the Luxembourg tax administration, as well as with the list of the beneficiaries of the IP box regime, is a clear illustration of Luxembourg’s commitment to finding common solutions on a European level,” Bettel said.
EU Commissioner in charge of competition policy, Margrethe Vestager, said she welcomed the decision, especially Luxembourg’s acknowledgment of the Commission’s power to investigate general tax rulings practices under state aid rules.
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