2. 1) Our research shows that over the past 10 years multinational companies from
around the world have systematically used Luxembourg’s tax rulings to obtain
significant tax advantages in Luxembourg and elsewhere. Why does
Luxembourg help companies avoid hundreds of millions of euros in taxes?
2) Our investigation covers the period in which Bureau 6 was led by Mr. Marius
Kohl, who had a small staff. How was Bureau d’Imposition Sociétés 6 able to
thoroughly review and process hundreds of complex tax rulings every year with
such a small staff?
3) Can you describe the process companies have to go through to obtain a tax
ruling in Luxembourg? Did that process change after Mr. Kohl left his post? If so,
how?
4) One of the requirements for certain Luxembourg subsidiaries is that they have
real economic substance in Luxembourg. Our investigation shows that the
substance rules are likely being violated, with some companies having just a mail
box and no personnel in Luxembourg. How do you control that companies
comply with substance and other requirements? How many companies have you
fined or punished in any other way in the past 10 years for lacking real economic
substance in Luxembourg?
5) Our data analysis shows that some popular addresses in Luxembourg are home
to hundreds of active companies. For example: 5, rue Guillaume Kroll. How can
1,300 companies run businesses from just 1 building?
6) While Luxembourg has a 29% corporate income tax, we have found that in case
after case the proportion of profits actually taxed is marginal, often as little as
0,25%. This reduces the effective tax rate dramatically. Why do you give
companies these generous tax breaks?
7) The cases we have investigated show that companies systematically received
advance approval from the government of Luxembourg to use hybrid
instruments, which helped them exploit international tax mismatches and avoid
taxes both in Luxembourg and elsewhere. Why does Luxembourg undermine tax
collection in third countries by approving in advance the use of hybrid financial
instruments?
8) Critics and insiders say that while Marius Kohl was head of Bureau d’Imposition
Sociétés 6, a small circle of accountants from the Big Four accountancy firms
enjoyed great access to his office. They say this is why Luxembourg approved so
many tax rulings during his tenure. What is your response?
9) The EU Commission has repeatedly requested that Luxembourg discloses
details about its tax rulings and intellectual property regime. Luxembourg did not
disclose all the information required and has sued the EU Commission for
requesting it. Why do you keep details about tax rulings and the intellectual
property regime secret?
3. 10) The OECD BEPS project and recent investigations by the European Commission
show that more and more questions are being raised about Luxembourg’s tax
regime. How do you see this criticism? And how do you see the evolution in the
near future?
11) The EU Commission has told Luxembourg that it believes a tax ruling
Luxembourg approved for Fiat Finance constituted state aid. If this is the case,
hundreds of similar tax rulings could come under scrutiny. What is your
response?
