EU launches tax action plan to crack down on sweet deals for big multinationals

The European Union's taxation chief has unveiled a plan for tackling corporate tax avoidance and ending the practice of sweet deals for multinational companies.

The plan wants to make sure that multinationals pay taxes where they generate profits, that tax rules in one country do not penalize others, and that honest businesses don't lose out to unscrupulous competitors.

Pierre Moscovici, the EU's top tax official, said Wednesday that "our citizens can no longer tolerate that certain companies, often the most prosperous, avoid fair tax contributions and that certain tax regimes encourage them on this path."

The move follows the so-called Luxleaks allegations into preferential tax agreements for multinationals that have offices in Luxembourg. The EU set up a committee in February to probe national tax rules.