Eueopean Commission Exposes AB InBev Tax Scheme
Accusations Made Of Illegal Tax Breaks Involving World’s Largest Beer Maker, AB InBev
Belgium, the host country of AB InBev’s headquarters, has been ordered by European Commission to recover €700 million from at least 35 different companies it says have participated in illegal tax breaks.
AB InBev has been accused of receiving shelter to €140 million of profit by funneling it to a company that only exists on paper.
Margrethe Vestager, the EU’s competition chief, said in a statement:
Belgium has given a select number of multinationals substantial tax advantages that break EU state aid rules…
It distorts competition on the merits by putting smaller competitors who are not multinational on an unequal footing.
The result is double non-taxation,” Vestager said, adding that the deducted profits are not taxed anywhere.