For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails
Sign up to our free breaking news emails
Belgium gave tax breaks to multinational companies that were illegal under EU state rules, the European Commission has ruled.
At least 35 companies have benefitted from an illegal "excess profit" tax scheme since it was introduced in 2005. They must now pay back €700m in unpaid tax.
Companies including Lucky Strike cigarette maker British American Tobacco and Stella Artois brewer AB InBev benefitted from the scheme, according to the FT.
A spokesperson from AB InBev told the Independent: "While we are disappointed by this decision, we remain confident that our tax rulings are in full compliance with the EU jurisprudence on state aid and that we have always complied with Belgian and international tax provisions."
Commissioner Margrethe Vestager said the deal was unfair to smaller companies.
"It distorts competition on the merits by putting smaller competitors who are not multinational on an unequal footing," Vestager said.
The tax scheme was marketed with the tagline "only in Belgium", to encourage investment in the country.
Business news: In pictures
Show all 13
It allowed businesses to exclude a chunk of their profits from their tax bill.
The EC has the power to force governments to claw back unpaid taxes from as far back as 10 years.
The Belgian case follows the EC's decision that Starbucks and Fiat must repay millions in unpaid tax bills after deals between the two companies were found not not comply with EU tax rules.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies