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This article was published on Oct. 21, 2015 at 11:16.
The last change is the October 21, 2015 at 24:11.
BRUSSELS – As expected, the European Commission today announced that it considers illegal tax agreements that ‘The Netherlands and Luxembourg have given over the years to two companies, Starbucks and Fiat. The Competition Commissioner Margrethe Vestager considered the so-called tax rulings illegitimate state aid, and therefore ordered the two governments to recover unpaid taxes, or about 20-30 million EUR for each company – the precise calculation is entrusted the two countries. “Tax Agreements that artificially reduce the tax burden are not in line with European rules relating to state aid,” he explained Ms. Vestager this morning at a press conference here in Brussels. “I hope that with this decision – said the former Danish Minister of Finance – the message is understood by governments and also by the companies. All companies, large or small, multinational and not have to pay their fair level of tax. “
The Commission considers that the two agreements do not reflect” economic reality “and are based on “complex methods and artificial” in order to reduce the amount of taxes. Both companies must pay taxes not collected for 20-30 million euro. As for Fiat Chrysler Automotive, it has been under investigation by Fiat Finance & amp; Trade, the financial subsidiary present in Luxembourg. The investigation showed that since 2012, the calculation of profits has been based on “premese economically unjustified.”
Meanwhile, Starbucks has enjoyed a generous tax agreement from the Dutch authorities, which since 2008 has enabled the company to reduce the taxes of a subsidiary engaged in roasting coffee. Low taxes on the amount requested to be recovered, Ms. Vestager said: “The sums are not spectacular. And ‘the political message that counts: on the one hand, companies must pay the right, the other tax agreements should not be disconnected from economic reality. “
The Commissioner pointed out that the fight against tax evasion can not be done only through the rules on state aid: “We have to legislate in this field. I take this opportunity to call on countries to adopt the action plan recently submitted by the Commission, in particular to combat the transfer of profits from a subsidiary to another in different countries. ” According to the calculations of Brussels, Fiat and Starbucks would pay taxes for just 0.4 and 0.6 million Euros.
Now, you can look down to two similar cases are still open, and Apple Amazon, Ireland and Luxembourg. The problem of tax rulings broke out in 2014, when it emerged that the Grand Duchy has granted agreements in dozens of companies. The scandal has embarrassed the Commission President Jean-Claude Juncker, former Prime Minister of Luxembourg. Asked about the impact the decision will have on the credibility of Mr Juncker, Ms. Vestager replied laconically: “I try to do my job the best I can.”
Yesterday Fiat Chrysler Automotive criticized the ‘Pending the Commission’s decision, even before it was official. Today the government of Luxembourg said in a statement not to share the choice of Brussels, noting that the government “does not prove the existence of a selective advantage” in favor of Fiat Finance & amp; Trade. The Grand Duchy “reserves all rights.” In response, Ms. Vestager recalled that countries have two months to implement the Community decision.
Meanwhile, Starbucks announced its intention to appeal against the decision of the European . “Starbucks – according to a statement from the company – shares the concerns expressed by the Dutch government, according to which there are several errors in the decision and plan to appeal because we followed the rules and Dutch OECD accessible to all.” The American company “has complied with all OECD rules, guidelines and laws (…) Starbucks has paid a tax rate of 33% global average.”
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