Letterbox companies are an increasing phenomenon of major concern for the European trade union movement. Such artificial business constructions allow for their domiciliation in a tax friendly country, while performing commercial activities in other countries. The main objective is to minimize tax liability. Not only do letterbox companies represent a real danger to public finances, they constitute a direct threat to social Europe leading to social dumping and the exploitation of workers. Yet, EU law leaves room for such intolerable practices, and letterbox-type arrangements are expanding throughout the Union
Discussion paper by Jan Cremers, Tilburg Law School, published by the European Trade Union Confederation (ETUC)