KPMG Luxembourg welcomes the European Union’s recent confirmation of the soundness of the advanced tax agreement system. KPMG Luxembourg’s Georges Bock commented:
“The European Union has made it crystal clear that the practice of tax rulings makes sense and is legitimate. Pierre Moscovici – the Member of the EC in charge of Economic and Financial Affairs, Taxation and Customs - came out in support of the tax ruling concept, stating that it is out of the question to ban or regulate the advanced agreement process.”
“We support this statement and believe it was backed up by sound reasoning. Tax rulings – as Moscovici mentioned - are a tool for good management. They offer certitude and predictability for businesses, by giving advanced confirmation of the taxes to be paid in the coming years. As a business leader, I can vouch for the importance of this: we have a duty and responsibility to plan for the future. I fully support the EU’s efforts to tackle tax evasion and ensure that everyone pays their fair share of taxes with full transparency between different countries. However, tax rulings cannot – and should not – take the blame here and the EU is right to give certainty on this point.”
“Mr. Moscovici’s statements validate Luxembourg’s decision to leave its tax ruling system in place. Rather than putting restrictions on tax rulings, Luxembourg can instead give tax authorities the tools and resources to manage the process and make top quality decisions”
Georges Bock also welcomed Mr. Moscovici’s statement that making tax agreements publicly available would constitute a violation of data privacy rules.