Tax Man claims EUR 30 million in taxes from AB-InBev

Belgium | A sweet deal between AB-InBev and the Belgian government has fallen foul with the country’s tax man. For five years, between 2011 and 2015, AB InBev only paid EUR 11.2 million (USD 12.6 million) in taxes on a profit of more than EUR 280 million in Belgium.

According to the Belgian newspaper De Tijd, the brewer had entered into a tax deal with the government for Ampar, its central procurement office, which meant it did not have to pay taxes on 80  percent of its profits. However, the Belgian Tax Office did not agree to the deal. It is fighting the agreement and wants the brewer to pay more in corporate taxes for the first two financial years.

The dispute comes at an inconvenient time. Three years ago, the European Commission ruled that the Belgian government had negotiated secret tax deals with 40 large companies, which the Commission deemed unlawful state subsidies.

However, Belgium was proven right by European judges in February this year. Undeterred, the Commission has appealed against the ruling and is now collecting information about those deals.

In the meantime, AB-InBev has chosen to be on the safe side and has moved its purchasing department to tax-friendly Switzerland.