EU Investigates Starbucks Over Dutch Tax Deal

The European Commission has announced its preliminary view following investigation is that the Starbuck’s special tax deal with the Netherlands may be amount to illegal state aid. A number of so-called sweetheart deals, or rulings are being looked at in which large, mostly non-EU, companies have a special arrangement with an individual EU country. These allow a company to pay a low amount of tax to an individual county, rather than higher taxes across the whole of the EU. The special rulings are legal and a common way for some EU countries to get a small amount of tax which they would not otherwise have got, at the expense of everyone else in the EU. So the Commission angle of looking at it as state aid, which has to be paid for, is a potential downside risk to the special deals.

Eamon McNicholas
Tax Barrister, Accountant
 
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About Eamon McNicholas

Tax Barrister, Accountant www.EamonMcNicholas.com
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