EU probes UK telecoms firms over state aid
AFP, Brussels
The European Commission said Wednesday it had launched an investigation into whether tax arrangements applied to two British telecommunications companies breach European Union state aid rules. BT, the successor to the state-run fixed line monopoly, and Hull-based Kingston Communications are the focus of the probe into the application of business rate tax on telecommunications infrastructure. The EU commission said Britain's tax valuation authority "applies a certain asset valuation method to BT and Kingston, while it applies other methods to their competitors. "The application of different methods may favour BT and Kingston, resulting in a disproportionate tax burden for other companies competing in the market for electronic communication services," it said in a statement.
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