Press Release: State aid: Commission opens in-depth investigation into the Belgian excess profit ruling system

On 3 February 2015, the European Commission opened an in-depth investigation into a Belgian tax provision, which allows group companies to substantially reduce their corporation tax liability in Belgium on the basis of so-called 'excess profit' tax rulings. In essence, the rulings allow multinational entities in Belgium to reduce their corporate tax liability by 'excess profits' that allegedly resulted from the advantage of being part of a multinational group.

The EC had doubts if the tax provision complied with EU state aid rules, which prohibit the granting to certain companies of selective advantages that distort competition in the Single Market.

ESO: Background information: State aid: Commission extends information enquiry on tax rulings practice to all Member States http://www.europeansources.info/record/press-release-state-aid-commission-extends-information-enquiry-on-tax-rulings-practice-to-all-member-states/

European Commission: DG Communication: RAPID: Statement/15/4083, 03.02.15: Statement by Commissioner Vestager on the opening of an in-depth investigation into the Belgian excess profit ruling system http://europa.eu/rapid/press-release_STATEMENT-15-4083_en.htm

EUObserver, 03.02.15: Belgium on EU radar over corporate tax scheme https://euobserver.com/economic/127478

BBC News, 03.02.15: EU tax probe widened to Belgium http://www.bbc.co.uk/news/business-31115172

---