EU Urges Luxembourg, Malta to Bolster Tax Dodging Deterrents

The European Commission pushed Luxembourg and Malta to strengthen measures against aggressive tax planning, warning both countries they’re susceptible to companies shifting profits to low-tax jurisdictions.

Luxembourg “remains exposed to aggressive tax planning risks linked to its role as a major financial hub” despite implementing EU and international tax reforms, the commission said its annual country-specific reports on the state of European economies issued Wednesday.

It called on the country to take action, particularly by “ensuring sufficient taxation of outbound payments of interest and royalties to zero-/low-tax jurisdictions.”

The commission also recommended Malta tackle tax avoidance more proactively, specifically ...