MEPs quizzed 11 multinational companies, including Facebook and Google, on their corporate tax dealings yesterday
Members of European Parliament (MEPs) gave 11 multinational companies, including Google and Facebook, a five-hour grilling over their corporate tax practices late on Monday.
In particular, the Special Committee on Tax Rulings questioned the companies about their transfer pricing arrangements, which affect the prices companies transact at within a group, and their feelings towards the Organisation for Economic Cooperation and Development’s (OECD) proposals on base erosion and profit shifting (BEPS), which are designed to tighten mismatches in tax rules that allow companies to move profits to countries with lower tax rates.
Google was quizzed about its Bermuda subsidiary and Facebook was asked about why it stored its intellectual property rights in the Cayman Islands.
Most of the companies present highlighted that their tax arrangements were legal and that they employed a number of people across the EU.
Representatives from car company Fiat Chrysler and retail giant Walmart were also invited to attend, but declined to appear.