English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

FedEx named in Luxembourg tax revelations

LUXEMBOURG, GD: The new head of the European Commission, Jean-Claude Juncker, is now the focus of an investigation by the organization he runs following the release of documents that claim Luxembourg has provided a legal loophole for international companies to reduce their tax liability.

Juncker was the prime minister of Luxembourg from 1985 to 2013 and head of the country's Finance Ministry from 1989 to 2009.

Luxembour Finance MinistryAccording to claims by the International Consortium of Investigative Journalists (ICIJ), its six-month probe of 28,000 confidential documents has revealed 340 companies including IKEA, Pepsi, Deutsche Bank and FedEx "appear to have channeled hundreds of billions of dollars through Luxembourg and saved billions of dollars in taxes".

Noting there's nothing illegal in the process, the ICIJ cites a document that purports to show the Memphis-based company set up two Luxembourg entities to move revenue from its Mexican, French and Brazilian operations to an affiliate in Hong Kong.

ICIJ says other companies involved in its investigation include Accenture, Abbott Laboratories, American International Group (AIG), Amazon, Blackstone, the Coach handbag empire, H.J. Heinz, JP Morgan Chase, Burberry, Procter & Gamble, the Carlyle Group and the Abu Dhabi Investment Authority.

In response to the ICIJ, a statement from Luxembourg's Finance Ministry said that while its behavior has been "totally legal", it acknowledged that since the Great Recession of 2008 "the legitimacy of certain mechanisms, which are compliant with international law, is put in doubt".

Finance minister Pierre Gramegna (behind lectern) said Luxembourg now "believes that it is not acceptable that companies take advantage of the international legal framework to avoid de facto all taxation" and the international community "needs to adapt to today's realities".

The ICIJ notes Luxembourg competes with other so-called tax havens including Gibraltar (UK), Delaware (USA) and Ireland. According to Citizens for Tax Justice, a Washington DC-based nonprofit research group, more than 170 companies on the Fortune 500 list have a Luxembourg branch including Apple Inc. that recently reported an increase in offshore profits of US$16 billion.

News

Written on 11/12/2017, 18:20
deutsche-bahn-subsidiary-regrets-rastatt-rail-closureDUSSELDORF: December 11, 2017. Speaking at meeting of rail operators last week, DB Netz CEO Frank Sennhenn expressed regret for his company's involvement...
Written on 10/12/2017, 22:44
rolls-royce-to-test-remote-controlled-shippingPARIS: December 06, 2017. The European Space Agency (ESA) and Rolls-Royce have signed an MoU to investigate how space technology can be used to develop...
Written on 08/12/2017, 20:10
beijing-continues-to-cut-carbonNAIROBI: December 06, 2017. According to an Assessment Report on Beijing Capital Airport, released during the third UN Environment Assembly in Nairobi...
Written on 07/12/2017, 20:53
bollore-begins-rail-renovation-between-cote-d-ivoire-and-burkina-fasoABIDJAN, Côte d'Ivoire: December 04, 2017. SITARAIL, a Bolloré Transport & Logistics subsidiary, has begun upgrading the rail link between Abidjan and...
Written on 07/12/2017, 19:53
innovative-dry-bulk-handling-at-port-of-rigaRIGA, Latvia: December 06, 2017. The Baltic port of Riga says it has become the first in Europe to use containerized dry bulk handling technology. Rīgas...
Written on 06/12/2017, 21:57
azerbaijan-railways-gets-us-400-million-upgradeMANILA: December 06, 2017. The Asian Development Bank (ADB) is providing loans to Azerbaijan Railways totaling US$400 million to improve governance and...
Written on 03/12/2017, 22:36
amsterdam-to-get-china-rail-link-in-2018AMSTERDAM: November 29, 2017. Together with TMA Logistics, Austria's Rail Cargo Group and the Port of Amsterdam, Netherlands-based Nunner Logistics plans...
Written on 01/12/2017, 18:27
alibaba-launches-china-anti-poverty-campaignHANGZHOU: December 01, 2017. Alibaba Group executive chairman Jack Ma has established a US$1.5 billion 'Alibaba Poverty Relief Fund' by leveraging the...
Written on 29/11/2017, 19:46
dhl-adds-tesla-trucks-to-its-electric-fleetBONN: November 29, 2017. DHL Supply Chain has announced an order for 10 Tesla Electric Class 8 Semi tractors for delivery in 2019. The company said it...
Written on 28/11/2017, 21:50
netherlands-rail-operators-threatened-by-high-costsUTRECHT, Netherlands: November 28, 2017. RailGood, a Dutch alliance of 50 rail operators, logistics companies, inland terminals plus the German port of...
Written on 28/11/2017, 19:54
electric-powered-airbus-by-rolls-royce-and-siemensLONDON: November 28, 2017. Airbus, Rolls-Royce and Siemens are to develop and fly an hybrid-electric powered BAe-146 test aircraft by 2020 to determine...
Written on 27/11/2017, 21:04
rail-operators-want-compensation-for-rhine-valley-closureBRUSSELS: November 27, 2017. Three European rail freight associations want DB Netz, a subsidiary of Deutsche Bahn, to pay customers full compensation...
Written on 24/11/2017, 22:56
argentina-gdp-needs-aviation-investment-says-iataBUENOS AIRES: November 20, 2017. A report from Oxford Economics says Argentina could be a "regional powerhouse" if the government invested in the...
Written on 24/11/2017, 21:41
europe-top-in-attracting-business-talentLAUSANNE, Switzerland: November 20, 2017. A new study by the IMD business school says Switzerland, Denmark and Belgium are the best at attracting,...
Written on 21/11/2017, 21:21
singapore-signs-smart-logistics-mou-with-south-koreaSINGAPORE: November 21, 2017. Government enterprise agency IE Singapore has signed an MoU with South Korea's Gyeonggi province to collaborate in...
Written on 17/11/2017, 21:43
decathlon-takes-to-the-railsDOURGES, France: November 16, 2017. Maersk Line and Damco, subsidiaries of A.P. Møller – Mærsk, have completed their first block train from Wuhan, China...
Written on 16/11/2017, 18:06
mia-director-resignsMIAMI: November 14, 2017. Miami-Dade County Aviation Department director and CEO Emilio González, the driving force behind much of Miami International...
Written on 14/11/2017, 20:26
truck-manufacturers-face-class-action-lawsuitLONDON: November 14, 2017. UK law firm Collyer Bristow has established a £100 million class action for truck operators that may have been overcharged by...
Written on 14/11/2017, 17:03
finland-opens-new-rail-route-to-chinaKOUVOLA, Finland. November 12, 2017. A new weekly rail service between Northern Europe and China launched on November 10 as the first train with 41...
Written on 10/11/2017, 20:10
imd-acknowledges-family-business-excellenceGRAN CANARIA, Canary Islands: November 10, 2017. Swiss business school IMD has recognized global brand management company Pentland Group with its 22nd...

- powered by Quickchilli.com -