Luxembourg Appeals European Commission Decision

By Global Tax Weekly

There is probably a perception outside of continental Europe that the vast majority of EU member states toe the line come what may, committing themselves blindly to the principle of “ever closer union” and doggedly standing by EU initiatives even when they are found to be quite bad ideas. It’s only the pesky, rebellious Brits that think they’re so special, isn’t it? It is perhaps an assertion that’s unfair.

Many member states have serious misgivings about such initiatives as the FTT and the proposed common corporate tax base. And even Luxembourg, which was ruled for many years by arch-Europhile Jean-Claude Juncker, the current President of the European Commission, is prepared to rebel occasionally.

Luxembourg has shown by its recent actions that it fundamentally opposes the European Commission’s assertions that certain tax rulings between its tax authority and multinational companies are a form of state aid. For not only is it taking on the Commission in the European Court, it also intends to support Ireland in its battle with the Commission over billions of euros in state aid supposedly given to tech giant Apple.

Indeed, the EU’s White Paper on the future of Europe hints that the goal of ever closer union among all member states is perhaps achievable, and that greater harmonization can only be achieved among a “coalition of the willing.” It is perhaps finally an admission from the EU that one size doesn’t fit all.

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