Tax advantages for Fiat in Luxembourg and Starbucks in the Netherlands deemed unlawful under EU State aid rules
26 October 2015
Mayer Brown Legal Update
The European Commission (“Commission”) ruled on 21 October that tax advantages granted by Luxembourg to Fiat and by the Netherlands to Starbucks by means of advance tax rulings were unlawful under the EU State aid rules. The aid in question was unlawful as it was deemed to confer unfair advantages on Fiat and Starbucks. The two Member States will be required to recover the aid, in each case amounting to €20-30m, from the companies.
Additional investigations are pending, and the Commission has widened its review to include advance tax rulings by all EU Member States as part of its efforts to tackle tax evasion and tax fraud.