Starbucks and Fiat Chrysler have to pay money back, after 'illegal' tax deals

21 October 2015

starbucks-logo Big tax news now, and Starbucks and Fiat Chrysler have been told they're going to have to pay back between €20m and €30m in taxes, after it was decided that their European tax deals were illegal.

European competition commissioner Margrethe Vestager said that these deals that Starbucks had in Holland and Fiat had in Luxembourg were basically state aid. Now, the Netherlands and Luxembourg disagreed with the Commission, and Starbucks are likely to appeal.

For now though, they're all in trouble and investigations into tax deals are continuing, with Amazon and Apple under the spotlight.

"Tax rulings that artificially reduce a company's tax burden are not in line with EU state aid rules. They are illegal. I hope that, with today's decisions, this message will be heard by member state governments and companies alike," Vestager said.

"All companies, big or small, multinational or not, should pay their fair share of tax," she added.

The Dutch government are "surprised" by this decision, and they're pretty sure that their arrangement with Starbucks doesn't contravene international standards.

The Luxembourg Ministry of Finance said the Commission had "used unprecedented criteria in establishing the alleged state aid". "Luxembourg disagrees with the conclusions reached by the European Commission in the Fiat Finance and Trade case and reserves all its rights."

TOPICS:   Investments   Tax


  • squiffy
    Lets hope it forces companies to pay proper tax not some loophole tax dodge.
  • jim
    and no doubt they will all end up paying sod all as usual

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