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Luxembourg public prosecutor lodged an appeal against the verdict on the recent so-called scandal "LuxLeaks", arguing that the sentences imposed by the court was too lenient. Earlier this year, Antoine Deltour and Raphael Halet, both former employees of PricewaterhouseCoopers (PwC) consulting firm, received suspended sentences by the court 12 and 9 months, respectively, for their role in the disclosure of thousands of documents detailing the private tax ruling between multinational companies and the tax authority of Luxembourg. They also had to pay a fine of 1,500 EUR (1,680 USD) and 1,000 EUR, respectively. A third defendant, a French journalist Edouard Perrin, who made the initial discovery of LuxLeak and the first to publish the story on French television, was acquitted of all charges. Let us recall that in this scandal for the exemplary data were involved 340 major transnational and national companies from around the world. It is believed that the defendants, with the support of the local authorities thought out and implemented an elaborate scheme of tax evasion, in some cases, reducing the payout to just 1%. The defendants face various charges during the...

Luxembourg's finance minister Pierre Gramegna confirmed that the government will gradually cut the corporate tax rate but the proposed changes to the restrictions on loss carry rules. Gramegna said that corporate tax will be reduced from the current rate of 21 percent to 19 percent in 2017 and further decline to 18 percent by 2018. Luxembourg's finance minister Pierre Gramegna confirmed that the government will gradually cut the corporate tax rate but the proposed changes to the restrictions on loss carry rules. Gramegna said that corporate tax will be reduced from the current rate of 21 percent to 19 percent in 2017 and further decline to 18 percent by 2018. In addition, the corporate tax rate for annual income of small businesses which do not exceed $ 28,000, will be reduced to 15 percent. Also Gramegna announced the adjustment of the proposed restrictions on transfer in front of past losses of the company. Initial proposals would allow loss carry forward for 10 years and used to compensate for a maximum of 80 percent of the profits. However, Gramegna informed Parliament that the losses will be "more strictly controlled" in 2017. And under the current rules the...

The Luxembourg government has announced a package of tax measures that will be introduced next year including the reduction of the corporate tax and changes to the personal income tax. The government plans a gradual corporate tax rate reduction by three percent. Starting with the two percent cut to 19 percent by January 1, 2017. And since January 2018, the rate will drop to 18 percent. In addition, a lower rate of 15 percent will be available for the "young, innovative companies ", annual taxable income that does not exceed EUR 25,000 per year. Nevertheless, the company's ability to carry losses forward to offset against future income will be limited in 2017. Existing law allows unlimited number of losses of previous years. Starting next year, the accumulated losses can be carried forward only for 10 years and use to compensate for a maximum of 80 percent of profits. The government also intends to revocation of provisional 0.5% percent crisis tax in 2017 and make income tax system more "fair" by reducing tax rates. However, the tax on high incomes which exceed EUR 150000 would be 41% and revenues more than EUR 200,000 - 42 percent. Author:...