EU COMPANY LAW, ARTIFICIAL CORPORATE ENTITIES AND SOCIAL POLICY

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)

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