(December 10, 2014)

On December 10, 2014 the Luxembourg Ministry of Finance issued a press release in which it comments on the latest publications by the ICIJ. The press release is available in both the French and the English versions. Below we will include the full text of the English version of the press release as published on the website of the Luxembourg Ministry of Finance:

“The Luxembourg ministry of Finance comments on the latest publications by the ICIJ

The ministry of Finance acknowledges the publication by the International Consortium of Investigative Journalists (ICIJ) and affiliated medias of a further series of advance tax decisions (“rulings”) issued by the Luxembourg tax administration. As with previous publications (“Luxleaks”), the way in which these documents were acquired is highly questionable.

The now released documents do not fundamentally differ from those already published a few weeks ago.

As previously stated on numerous occasions, Luxembourg agrees that the legitimacy of certain mechanisms, which are compliant with international and national law, can be put in doubt from an ethical point of view. Currently, the interaction of the tax regimes of multiple countries, within the current international framework, together with the application of non-double taxation treaties, can lead to a significant reduction of a company’s tax burden, or even no taxation at all. The analysis of this situation calls for a broad perspective, and cannot be limited to one country's regulatory framework. The international community as a whole faces a responsibility to adapt international regulations to current realities. Luxembourg actively supports the corresponding European and international initiatives, including with regard to the use of tax rulings.

Rulings issued by the Luxembourg tax authority are neither contracts nor mutual agreements. They are unilateral decisions by the tax authority. They are not, and never have been, secret. In fact, Luxembourg, upon request, exchanges information on rulings with other countries, as foreseen by non-double taxation treaties as well as by directives and agreements concerning administrative cooperation and mutual assistance in tax matters. Luxembourg supports the initiative of the EU Commission to quickly present a draft directive aimed at introducing a mandatory automatic exchange of information on tax rulings between the competent authorities of the EU member states.

For further Information, please find attached hereto : 

• The government’s position on the practice of issuing tax rulings (11.11.2014)
• The ministry of Finance’s position paper on tax transparency and rulings (10.12.2014)

Please notice that the ministry does not comment on individual cases.

Released by the Ministry of Finance”

The Luxembourg Ministry of Finance attached the following documents to its press release (by clicking on the document name you will be forwarded to the document as published on the website of the Luxembourg Ministry of Finance, which will open in a new window): 

• Luxembourg ministry of Finance position paper on tax transparency and rulings
• The Luxembourg government’s position on the practice of issuing tax rulings
• Prise de position du gouvernement luxembourgeois au sujet de la pratique des décisions anticipées en matière fiscale

As stated above the press release was issued in both the French and the English language. Click here to be forwarded to the press release as issued by the Luxembourg Ministry of Finance.

Follow International Tax Plaza on Twitter (@IntTaxPlaza) 

Copyright – internationaltaxlaza.info