Critics say Luxembourg’s complicated tax structures have resulted in the country becoming a haven for large international corporations looking to save on tax payments.

The calls for Luxembourg to stop arranging favourable tax deals for multinationals comes after the Guardian reported the leaking of 28,000 documents from the country’s head of state, the Grand Duchy, which revealed more than 1,000 companies had benefited from the tax structures.

A number of British organisations such as vacuum cleaning company Dyson were involved in the deal which is legal, and has been approved by the European Union.

The nature of the tax laws have been criticised by the finance ministers for not meeting international standards, while others say the structures have resulted in losses for other European countries.

New EU chief Jean-Claude Juncker, who served as Prime Minister of Luxembourg for 19 years, was in power when the initial changes to taxation laws were introduced and is credited with changing the country’s economy from one primarily based on agriculture to a hub for financial services.

(VoR)