Europe's second-highest court will rule on Sept. 24 whether Starbucks Corp ...
Luxembourg, the Netherlands and Ireland are among countries where much of their economies have been built on attracting multinationals. Ireland is fighting against an order to claw back a record 13 billion euros in back taxes from Apple.
Vestager in her 2015 decisions said U.S. coffee chain Starbucks had benefited from an illegal tax deal with the Dutch and the Italian-U.S. carmaker Fiat Chrysler with Luxembourg. She said Fiat’s Luxembourg unit paid “not even” 0.4 million euros in corporate tax in 2014 and Starbucks’ Dutch subsidiary less than 0.6 million euros.
The Commission said the companies set prices for goods and services sold between subsidiaries, known as transfer prices, that were below market rates and which artificially lowered their taxes. Starbucks criticized errors in the European Commission’s assessment while Fiat denied receiving state aid. Companies can appeal to the Court of Justice of the European Union on points of law.
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