European Commission widens probe into how multinationals cut tax bills

The European Commission is widening its probe into how multinationals use countries such as Luxembourg to cut their tax bill, an official with knowledge of the matter said yesterday.

Last month, the Commission warned Ireland, another EU country that offers companies offshore tax status, that it could investigate more companies beyond Apple as part of its probe into European tax practices.

“The Commission continues to gather information on the tax practices of member states . . . and this might lead to new formal investigations,” said the official, who declined to be named because of the sensitivity of the matter. “It would be premature to speculate on whether . . . formal investigations could be opened about any specific company.”