EU Cracks Down on Tax Dodges by Multinationals From Disney to Coke

Luxembourg, home of European Commission President Jean-Claude Juncker, is the EU’s richest country and a notorious tax haven for multinationals including Disney, Pepsi, Coca-Cola and Office Depot — among more than 300 firms who allegedly shifted profits to Luxembourg through sweetheart tax deals uncovered in last year’s ‘LuxLeaks scandal. The EC is now cracking down on corporate tax dodging — from probes into corporate transfer-pricing arrangements to tougher tax disclosures for companies across the bloc. That creates an awkward situation for Luxembourg as it takes over the EU’s rotating presidency on July 1, for the second half of the year. Expect a bumpy ride.