Reuters: Engie's Luxembourg tax deal set to be declared illegal aid

|By:, SA News Editor

European Union antitrust regulators will rule against Engie’s (OTCPK:ENGIY +0.5%) tax deals with Luxembourg in the coming weeks, as the bloc continues its crackdown on corporate tax arrangements, Reuters reports.

This would be the third ruling by the European Commission against Luxembourg’s tax deals with multinationals and the fifth against European Union countries, and could result in Engie paying millions of euros in back taxes, according to the report.

The EC has been probing rulings granted by Luxembourg to Engie since 2008, which it said appeared to treat the same financial transaction between Engie subsidiaries as both debt and equity, resulting in double non-taxation of companies in the GDF Suez group - as Engie was formerly known - a tax benefit that regulators said was not available to other companies.

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