EU inertia allows Reckitt Benckiser Group to avoid taxes

4.8.2017

Question for written answer E-005170-17
to the Commission
Rule 130
Miguel Viegas (GUE/NGL)

Reckitt Benckiser (RB), a multinational pharmaceuticals company, is also world leader in the manufacture of cleaning products. RB brands include a wide range of products such as Airwick, Calgon, Cillit Bang, Harpic, Vanish, Veet and Woolite.

According to an Oxfam report, the company has been funnelling transactions through regional centres located in tax havens in the Netherlands, Dubai and Singapore, saving it over GBP 200 million in tax between 2012 and 2014. Almost a third of this amount was at the expense of developing countries accounting for 31% of company turnover. RB was also able to make substantial savings under an advance deal with the Dutch Government exempting 75% of its profits from tax.

What view does the Commission take of this scandalous state of affairs, in view of its agenda regarding measures to combat fraud and tax evasion? Is the European Commission able to guarantee that the company will not attempt to avoid scrutiny in the country-by-country report by claiming that the information being sought is commercially sensitive?