EU parliament sets up committee to probe sweet tax deals for multinationals

The European Union has set up a special committee to look into national tax rules following allegations that Luxembourg had agreed on sweet deals for big multinationals.

The committee of European parliamentarians will examine a cache of leaked documents on Luxembourg's deals as well as other incidents of tax avoidance and evasion around Europe involving companies from around the world.

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The EU legislature approved the creation of the committee on Thursday by a 612-19 margin with 23 abstentions.

The committee will be similar to one set up to probe prisoner rendition allegations against the CIA and will have the power to propose legislation to address any issues it uncovers.

The EU has pledged to crack down on tax rulings favoring big firms.