LONDON (The Deal) -- Luxembourg takes over the EU's rotating presidency this week amid a storm of controversy over its dubious distinction as a tax haven for multinationals from Walt Disney (DIS) to Coca-Cola (KO).
The companies are among more than 340 firms who allegedly shifted profits to the Grand Duchy through sweetheart tax deals uncovered in last year's "LuxLeaks" investigation. Some even slashed their tax bills to below 1% of profit.
It's been bad public relations for European Commission President Jean-Claude Juncker, who was Luxembourg's prime minister when many of the deals were made and survived a censure vote in the European Parliament early on in his term.
The Juncker Commission is now cracking down on corporate tax dodging along several fronts.
In the antitrust field, E.U. competition chief Margrethe Vestager is leading in-depth probes into Luxembourg transfer-pricing arrangements for Amazon (AMZN) and Fiat Finance and Trade, part of Fiat Chrysler Automobiles (FCAU), and into similar set-ups for Apple (AAPL) in Ireland and Starbucks (SBUX) in the Netherlands.
Competition officials are also pressing 15 EU governments to provide information about tax rulings from 2010 to 2013 to see whether they grant companies selective tax advantages in violation of E.U. state aid rules. They've even threatened Estonia and Poland with court action if they continue to ignore information requests.