Luxembourg Accuses EU Of Fomenting Business Uncertainty Over Tax

Brussels’ attacks on corporate tax deals risks undermining business certainty in Europe, according to one of the states accused of handing out illegal tax benefits, the Financial Times reported. Pierre Gramegna, finance minister of Luxembourg, said the European Commission’s decision to use the state aid rules to challenge corporate tax agreements “raises so many issues about predictability and certainty”. In October the commission ordered Luxembourg to recover €20m–€30m from Fiat, the car company, after accusing it of using “artificial and complex methods” for pricing intercompany transactions — known as “transfer pricing” — to calculate the profits of its Luxembourg financing arm. Read more. (Subscription required.)