EU: Court rules in tax fights: Starbucks wins, Fiat loses

Starbucks won its fight on Tuesday (September 24) against an EU demand to pay up to 30 million euros ($33 million) in Dutchback taxes, while Fiat lost its challenge against an order to stump up a similar amount to Luxembourg, reported CNBC. 

Both cases were part of European Competition Commissioner Margrethe Vestager’s crackdown on unlawful tax breaks offered by EU countries to multinationals, which has also extended to Apple’s Irish deal and Amazon’s Luxembourg deal, among others.

Fiat told CNBC via email that it was “disappointed with the General Court’s judgment and is considering the next steps to take in this matter.”

“The matter is not material to the Group,” the spokesperson for Fiat Chrysler Finance Europe, also said.

Starbucks told CNBC via email: “Starbucks welcomes the decision by the European Court that makes clear Starbucks did not receive any special tax treatment from the Netherlands. Starbucks pays all of its taxes wherever they are due.”
Vestager said the court endorsed the Commission’s approach in using state aid rules in tax cases, adding however that a more comprehensive strategy was needed to tackle tax avoidance. 

“The ultimate goal that all companies pay their fair share of tax can only be achieved by a combination of efforts to make legislative changes, enforce state aid rules and a change in corporate philosophies,” she said.

Full Content: CNBC

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