EU Lays Down the Law on Tax Deals as Apple Probe Continues
- EU regulator clarifies rules for profit-shifting arrangements
- Transactions between units should be at market prices
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The European Union, locked in a tax battle with the likes of Apple Inc. and McDonald’s Corp., laid down the law in its bid to rein in governments that woo multinationals with special fiscal deals allowing them to reduce their fiscal liability by booking profits abroad.
The European Commission, which can ban unfair tax advantages conferred to companies, outlined measures cutting member states’ ability to make rulings that lower the tax burden of foreign businesses.