The European Commission is conducting an in-depth investigation into tax arrangements that Luxembourg has made with the Finnish beverage and food packaging company Huhtamäki. In three so-called rulings from 2009, 2012 and 2013, Luxembourg, according to the Brussels watchdog, may have given unfair advantages to competitors.

The rulings allow the Finnish company to shift internally via the Luxembourg subsidiary Huhtalux with loans and interest thereon. “Member States should not allow companies to set up schemes that erroneously reduce their taxable profits”, warns EU Commissioner Margrethe Vestager (Competition). She doubts whether the construction can be justified.

A journalistic research consortium brought the 2009 ruling five years ago to light in the so-called LuxLeaks survey. The European Commission has tapped Luxembourg for tax agreements with the French energy company Engie, Fiat and Amazon.

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