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EC orders Poland and Estonia to provide info on tax rulings

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The European Commission has issued two injunctions ordering Estonia and Poland to deliver information requested by the Commission on their tax rulings practice within one month.

The European Commission has issued two injunctions ordering Estonia and Poland to deliver information requested by the Commission on their tax rulings practice within one month. According to the EC, both countries have refused to respond in full to previous information requests, and that if any of the two fail to deliver the missing information within one month, the EC ‘may refer that member state to the EU Court of Justice’.

Previous information requests to Estonia and Poland were sent as part of the EC extending its state aid enquiry into national tax ruling practices to cover all EU member states in December 2014. The enquiry is aimed at clarifying allegations that tax rulings may constitute state aid and to allow the EC to ‘take an informed view of the practices of all member states’. So far Estonia and Poland are the only EU countries that have not cooperated and provided the required information in full. On the basis of the information received, the EC will ask 15 member states to provide a substantial number of individual tax rulings, but says that requesting these tax rulings does not prejudge whether this will lead to individual state aid investigations concerning the recipients of these tax rulings.

EU commissioner in charge of competition policy Margrethe Vestager 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: To have a complete overview we also need full information from Estonia and Poland. But based on the replies we have now received, I am today asking for tax rulings from 15 countries. We want to analyse them carefully to find out whether member states employ tax rulings to grant companies selective tax advantages that breach EU state aid rules.’

Issue: 1266
Categories: News , International taxes
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