The European Parliament has resolved to set up a “special committee on tax rulings and other measures similar in nature or effect” to examine practice in the application of EU state aid and taxation law in relation to tax rulings and similar measures issued by Member States. The committee, which has 45 members, was established for an initial period of six months. Such committees are empowered to examine EU processes, but their recommendations are not binding.

The committee is being set up in the wake of a series of investigations launched by the European Commission into tax rulings for multinational companies in Luxembourg, Ireland, Belgium and the Netherlands. It will look into tax ruling practices as far back as 1 January 1991, and will review the way the European Commission treats state aid in member states and the extent to which member states are transparent about their tax rulings. It will also seek to ascertain the negative impact of aggressive tax planning on public finances and formulate recommendations for the future. However, as noted above, its recommendations are not binding.