Lord Stoddart of Swindon – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Lord Stoddart of Swindon on 2016-02-01.

To ask Her Majesty’s Government what is their assessment of the criticism of the European Commission by Robert Stack, the US Treasury Official in charge of international tax policy, for disproportionately targeting US companies; and under what articles of the EU treaties the EU can tax foreign enterprises.

Lord O’Neill of Gatley

While corporate taxation is a matter for Member States, under the EU Treaties the European Commission has competence to conduct State aid investigations in order to prevent unlawful distortion of competition and to safeguard the internal market. Investigations into tax rulings issued by EU Member States to multi-national companies were opened by the Commission in 2013. While the Commission has found illegal aid has been provided by some Members States (not including the UK) relating to some US companies, rulings under investigation also relate to a number of non-US undertakings.