Paul L. Caron

Wednesday, October 21, 2015

EU Orders Starbucks, Fiat To Pay Millions Of Euros In Unpaid Taxes

New York Times, E.U. Orders 2 Nations to Recover Taxes From Starbucks and Fiat:

The European Union on Wednesday ordered the Dutch government to recover money from Starbucks and told Luxembourg to claw back funds from a Fiat Chrysler unit, in an expanding crackdown on tax avoidance by corporations.

Margrethe Vestager, the antitrust chief of the European Union, said that Luxembourg and the Netherlands had given the multinational corporations illegal state aid by letting them shift profits and pay lower tax rates than those available to other companies.

The decisions are a sign of Europe’s determination to counter increasingly sophisticated tax strategies used by multinational companies. And Wednesday’s moves could be only the first of a series of enforcement actions by Ms. Vestager’s office, which has been investigating tax arrangements that some European countries have used to attract multinationals, including big American technology companies like Apple in Ireland and Amazon in Luxembourg.

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