Report: BASF Used Loopholes to Avoid More Than $1B in Taxes

A newly released report alleged that German chemical giant BASF used a variety of controversial, albeit legal, methods to avoid more than $1 billion in taxes between 2010 and 2014.

German broadcaster Deutsche Welle reports that the study, commissioned by the European Parliament's Green Party, found that BASF avoided income taxes in its native country with the use of holding companies based in the Netherlands.

The company also utilized tax benefits in Belgium and Malta and shifted its profits to Switzerland and Puerto Rico.

Its profits in Malta, for example, were reportedly taxed at 35 percent but eligible for a refund of up to 85 percent when they were directed to foreign shareholders.

The report comes as European Union regulators attempt to crack down on tax loopholes.

"The true scandal is that most of the schemes used by BASF are legal and a consequence of fierce tax competition among EU member states," Aurore Chardonnet, EU tax policy advisor for advocacy group Oxfam, said in a statement.