Overview

• A study by economist Ceyhun Elgin estimates that BlackRock’s tax strategies deprived EU member states of between €500 million and €1 billion in revenues from 2017 to 2023.
• Elgin found that the firm’s effective tax rates in major EU markets were roughly half the statutory rates, achieved through transfer pricing and profit shifting mechanisms.
• High internal licensing fees levied on subsidiaries using BlackRock’s Aladdin software in Germany, France and Italy significantly reduced taxable profits and funneled income to low-tax jurisdictions.
• Martin Schirdewan, co-chair of the Left faction in the European Parliament, criticized former BlackRock Germany supervisory board chair Friedrich Merz and urged him to use his expertise to close tax loopholes.
• BlackRock disputes the report’s conclusions and maintains it pays taxes according to official rates, while the study calls for cross-border cooperation among EU tax authorities and comprehensive reporting requirements for large corporations.