The European Parliament has decided to set up a special committee on tax rulings and other measures similar in nature or effect to examine practice in the application of EU state aid and taxation law in relation to tax rulings and other measures similar in nature or effect issued by Member States.
The decision was adopted last Thursday, the 12th of February 2015, and the clear majority of the Parliament voted for the proposal.
The special committee’s main task will be to analyse and examine all tax rulings and other measures similar in nature or effect issued by Member States since 1 January 1991. Based on the examination, the special committee will also have the right to make any recommendations that it deems necessary in this matter.
The special committee shall consist of 45 members and the term of office of the special committee shall be six (6) months.
The matters underlying the decision of the European Parliament are the recent tax-related revealings in Luxembourg, Belgium and Ireland, where it has been revealed that states have been granting tax rulings to certain corporations, which have allowed the corporations via very aggressive tax planning to achieve tax rates closer to zero.