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EU rules Starbucks, Fiat tax deals illegal

One leading consultant says the case will rock corporate world to its very core, throwing tax planning into disarray

Published Thu, Oct 22, 2015 · 09:50 PM
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Brussels

THE European Commission ruled on Wednesday that Starbucks Corp and Fiat Chrysler Automobiles benefited from illegal tax deals with the Dutch and Luxembourg authorities, dealing a heavy blow to profit-shielding arrangements used by many multinationals.

Antitrust commissioner Margrethe Vestager said all firms must pay a "fair share" and ordered the Netherlands to recover 20 million (S$31.5 million) to 30 million euros in back taxes from the US coffee shop chain. Luxembourg must recover a similar amount from Italian-US carmaker Fiat.

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