EU steps up state aid probe into ruling practices of 15 nations, hits Estonia and Poland with injunctions

The European Commission on June 8 escalated its inquiry into whether EU countries’ tax ruling practices provide a selective advantage to companies in violation of state aid rules, asking 15 EU nations to provide the Commission with individual tax rulings and seeking injunctions against two others.

The countries — Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy, Lithuania, Portugal, Romania, Slovakia, Spain and Sweden — have been asked to provide a “substantial number of tax rulings,” the Commission said.

The Commission also said it has issued injunctions ordering Estonia and Poland to deliver within one month information requested by the Commission on their tax rulings practices.

The two countries have refused to adequately respond to a request for a specific and detailed overview of tax rulings issued from 2010 to 2013 on the grounds of fiscal secrecy and the principle of proportionality, but instead provided only general information, the Commission said.

“We are putting together the puzzle of tax ruling practices in the EU. Sometimes we had to ask Member States twice – or more – to provide information. Still, there are pieces missing,” said EU Commissioner in charge of competition policy Margrethe Vestager.

The Commission announced last December that would investigate the private tax ruling practices all 28 European Union states to determine if the practices violated state aid rules.

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