The impact of letterbox-type practices on labour rights and public revenue : four case studies on the use of letterbox companies and conduit entities to avoid labour laws, social premiums and corporate taxes
Report, European Trade Union Confederation (ETUC), Brussels, (June 2016)Abstract
A new ETUC report shows how businesses use ‘letterbox practices’ not only to pay lower taxes, but also lower wages and to impose bad working conditions. Letterbox companies are legal entities established in an EU country, where they have no (or minor) economic activities, in order to “regime shop” for lower taxes, wages etc. The report features case studies from Germany, the Netherlands, Italy and Sweden, covering the meat, road transport, car manufacturing and construction sectors. It shows how tax avoidance often combines with exploiting workers.