As already known, Vestager is tackling tax arrangements perceived as an undue State Aid, therefore breaching the TFUE and the original purpose of a proper functioning economy.
But what are potential tax arrangements leading to (unlawful) State Aid
- Unilateral advance pricing agreements,
- Tax ruling including excess profit tax rulings,
- Audit settlement agreements and
- other agreements with local tax authorities.
More concretely, the EU commisison can focus on:
- Transfer pricing (methodology, prefernce for direct TP method, lack ofcomparable benchmarks, lack of documentaiton, appearance of negotiated rulings
- Profit alocation methods
- Inconsistent application of national law
Moreover, the slides focus on a US perspective and how such authorities are concerned on these new rulings (retroactivity, based on OECD -therefore not internationally agreed- standards and second-guess local tax authorities).
Finally a list of suggestion on what to do.