EU: Commission to ramp up fight against Apple, Fiat tax avoidance

The European Commission is slated to reveal its position regarding the tax avoidance practice of several oversees companies including Apple, Fiat and Starbucks as soon as Monday, unnamed sources said.

The Commission launched a formal investigation into the practice in June to probe whether Apple’s operations in Ireland, Fiat’s operations in Luxembourg and Starbuck’s operations in the Netherlands constituted anticompetitive state aid. The companies are part of the practice of shifting operations to overseas companies to benefit from another country’s lower tax rates.

The tactic has also come under scrutiny from other jurisdictions, including in the US.

The Commission will reportedly publish its opening decision in the Apple case to explain why it found Apple’s tax deals with Ireland to constitute illegal state aid. Reports say Apple struck these agreements with Ireland in 1991 and 2007.

Another source said the Commission would also publish its opening decision in the Fiat case. Sources did not indicate whether the Commission’s stance on the Starbucks matter would also be revealed.

Full content: Wall St Journal

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