The European Commission has ordered Luxembourg to repeal by 2007 an 80 year-old law that "grants unjustified tax advantages" to the financing arm of banks, insurers and money managers.
"The European Commission has decided that the preferential tax regime for exempt, [multimillionaire] and financial holdings…is in violation of the state aid rules," an EU spokesman said on Wednesday (19 July).
Under the 1929 law, Luxembourg's corporate tax code attracts big foreign companies by lett...
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