Belgium to recover €700m from 35 multinationals

The Belgian tax authorites have been ordered to reclaim about €700 million from 35 multinationals, after the European Commission ruled that Belgium granted the corporations a number of considerable tax benefits that are in breach of EU State aid rules, reports Het Laatste Nieuws.

The ruling concerns tax benefits given to 35 multinational corporations in Belgium since 2005, which made them exempt from tax on that portion of their profits arising from the fact that they are multinationals. The tax loophole meant that the companies involved paid no taxes on as much as 50- to 90% of their actual profits, according to the Commission.

"The European Commission has concluded that selective tax advantages granted by Belgium under its 'excess profit' tax scheme are illegal under EU state aid rules," explained European commissioner for competition Margrethe Vestager (pictured).

Finance minister Johan Van Overtveldt warns that the recovery of the €700 million could have major implications for the companies involved.