EU moves to close corporate tax loophole

The EU has moved to close a loophole that has allowed multinational companies to reduce their tax bills by exploiting differences in national tax rules in countries including Ireland.

Corporate tax avoidance has become a hot issue in industrialised nations. Campaigners have drawn support from public anger at companies avoiding taxes at a time of austerity.

“The aim is to close a loophole that currently allows corporate groups to exploit mismatches between national tax rules, so as to avoid paying taxes on some types of profits distributed within the group,” finance ministers said in a joint statement.