Luxembourg has to explain to the EU its taxfrauding system by abusing intellectual property
European Union antitrust regulators ordered Luxembourg on Monday to hand over information on its corporate tax practices as part of their investigation into tax loopholes which have allowed companies such as Starbucks and Apple to cut their tax bills.
The move by the European Commission came after Luxembourg failed to provide data on its tax rulings in 2011 and 2012, and also details about the 100 largest companies which came under its intellectual property tax regime.
"As Luxembourg failed to adequately answer previous requests for information, the Commission has now adopted two information injunctions ordering Luxembourg to deliver the requested information within one month," the EU executive said.
in fact the system is that ll the subsidaries in Europe where there are higher taxes have to pay enormous royalties to the headoffice in Luxembourg (or another country with the same scheme) for being able to use the logo's and all the rest the company provides for
this way billions of dollars are shipped out of countries with a high tax rate to states like Luxembourg