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The judgments can be appealed to the EU Court of Justice, the bloc’s highest tribunal.While the amounts at stake -- about 30 million euros each for Starbucks and Fiat -- aren’t huge, lawyers will pore over the judgments ahead of multiple other appeals as companies, including the iPhone maker, rail against EU Competition chief Margrethe Vestager’s five-year crackdown on allegedly unfair tax deals.“The principles laid down in these judgments provide some ammunition for both the taxpayers and the commission in the ongoing investigations,” said Natura Garcia, a lawyer with Linklaters in London.Tax AgreementsChallenges have been piling up at the EU courts since state-aid investigators started work in 2013 to unearth what they deem to be the most problematic examples of otherwise legal individual tax agreements -- or tax rulings -- doled out to companies by countries.Luxembourg’s finance ministry said it would “analyze the judgment” and pointed out that the government “in the past few years has done numerous reforms to find against fiscal fraud and tax evasion.”The Dutch finance ministry is “glad there is clarity” following the court ruling, deputy finance minister Menno Snel said in an emailed statement.
The judgment “means that the tax authorities have not treated Starbucks better or differently than other companies,” he said.Fiat said in an emailed statement that while it’s disappointed with the ruling and considering its next steps, it’s not material to the group.No ‘Special’ TreatmentStarbucks said in a statement that it pays its taxes wherever they are due and that the ruling in its challenge “makes clear” that it “did not receive any special tax treatment from the Netherlands.The court decisions “give important guidance” to the commission on how to apply EU state aid rules in tax cases and the regulator will study them before deciding on the next steps, according to a statement by Vestager.She said they “confirmed the commission’s approach to assess whether a measure is selective and if transactions between group companies give rise to an advantage under EU state-aid rules based on the so-called ‘arm’s length principle’.”Vestager, who’s set to take on another 5-year stint as competition commissioner, said she’ll continue to look at “aggressive tax planning measures under EU state aid.”But ultimately, the goal is that all companies “pay their fair share of tax,” she said.
- On 15. oktober 2021
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