LuxLetters'Letters of information' to take advantage of tax benefits?

RTL Today
At the request of the CSV, the Minister of Finance and the Director of the Tax Administration provided further information regarding the "LuxLetters" case.
© AFP (Archiv)

Have Luxembourg's tax experts found a new, informal way to work around Luxembourg's new tax laws? According to research by several European media, "letters of information" may have helped to obtain certain tax advantages and thus slip through the net of the European rules in force.

A question formulated by the CSV this Friday morning to the Minister of Finance and the director of the Direct Tax Administration concerned such letters, which were sent to the Direct Tax Administration by taxpayers or their representatives.

In the case of no response from the Administration, taxpayers may have assumed implicit agreement had been given to the information in the letters.

Deputy Laurent Mosar (CSV) explains that this is not the case, as it is known that the tax legislation does not operate on a system of 'silence means approval'.

However, the Pirates would like the Administration to check whether internal malfunctions may have occurred, according to MP Marc Goergen.

Some companies sell, in addition to their accounting services, the drafting of a well-written letter in order to reduce taxes in certain areas, which does not mean that this approach will be accepted by the Administration's agents, he continues.

In order to avoid these tax advantages granted to certain people, the Pirates propose to rework the forms intended for the Administration, so that certain expenses can be detailed in a more formal way.

Read more: LuxLetters: Several European newspapers accuse Luxembourg of circumventing EU regulations

Back to Top
CIM LOGO