What Luxembourg’s tax haven business looks like..................

This short one-minute video, from the Treasure Islands website, was created in 2011. The offending Apple Itunes mail box address has since been moved, but I think the video still gives a good indication of just how artificial the whole business is.
Luxembourg tax leaks put pressure on G20 leaders to act on loopholes The Guardian
EU to press Luxembourg over tax breaks amid fresh allegations BBC
Luxembourg Tax Leak Puts EU’s Juncker Under Further Pressure The Wall Street Journal
Luxembourg leaks will put spotlight on Jean-Claude Juncker The Irish Times
European Commission says Luxembourg free to offer investment incentives – Jean-Claude Juncker takes “serene” attitude to #luxleaks The Irish Times
OECD says Luxleaks revelations not surprising The Irish Times
See also TJN briefing on BEPS here

More than 340 of the world’s largest companies like Heinz, GE Group and GlaxoSmithKline have been scoring secret tax rulings from Luxembourg’s tax authorities over the years, helping them save billions of dollars in taxes, according to documents leaked Thursday by a consortium of journalists.

The rulings enabled the companies to funnel billions of dollars through Luxembourg where they paid roughly 1 % !! in effective tax rates through strategies that were facilitated by PricewaterhouseCoopers LLP, the International Consortium of Investigative Journalists says. 

“The committee received evidence from a former senior PwC employee stating that within the firm the policy was that it would sell a tax avoidance scheme which had only a 25% chance of withstanding a legal challenge. As the committee chairperson put it “you are offering schemes to your clients – knowingly marketing these schemes – where you have judged there is a 75% risk of it then being deemed unlawful”.