Overview

• Commissioned by MEP Martin Schirdewan, a study by Ceyhun Elgin finds BlackRock shifted profits from high-tax EU countries to low-tax jurisdictions like Ireland and Luxembourg through internal licensing fees for its Aladdin platform.
• The research estimates BlackRock’s effective tax rate in Germany at 12–18%, well below the nominal 30% rate, potentially costing Germany €315–378 million and up to €1 billion across the EU in foregone revenue.
• BlackRock rejects the allegations, stating it pays taxes under each jurisdiction’s rules and is guided by independent tax experts and legal counsel.
• While legally common among multinationals, such profit-shifting practices have drawn criticism for undermining tax fairness and prompted calls for stronger transparency and coordination.
• The global 15% minimum tax introduced in late 2023 aims to curb tax dumping but faces hurdles as EU member states resist ceding control over their tax legislation.