EU crackdown on multinational tax deals

European Commission on Tuesday order Ireland to reclaim up to $14.5 billion in taxes from Apple

EU crackdown on multinational tax deals
Reuters Brussels
Last Updated : Aug 30 2016 | 4:05 PM IST

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The European Commission on Tuesday ordered Ireland to reclaim up to 13 billion euros ($14.5 billion) in taxes from US technology giant Apple.

Below is a list of previous cases in which the EU has ruled against tax deals for large corporations.

Completed Investigations:
 
Starbucks, The Netherlands

In October 2015, the Commission ordered the Netherlands to recover 20 million to 30 million euros in back taxes from US
coffee shop chain Starbucks. Both the Netherlands and the company said they would appeal the ruling.

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Fiat, Luxembourg

Also in October, the Commission told Luxembourg to recoup 20 million to 30 million euros from carmaker Fiat.
Luxembourg said it would appeal.

AB InBev, Atlas Copco, BP and 32 others, Belgium

The Commission in January told Belgium to recover around 700 million euros from 35 companies because of their participation in a tax scheme not compliant with EU competition rules. While the Commission did not name the companies involved, sources said the largest beneficiaries were ABInBev, Atlas Copco , BASF, BP and Proximus.


Atlas Copco said it had made a provision of 300 million euros.

Belgium had introduced a scheme under which multinationals could reduce their corporate tax bases by between 50 and 90 percent due to profits arising from, for example, economies of scale, which were not liable to tax in Belgium.

Ongoing Investigations:

Amazon, Luxembourg

The Commission is currently scrutinising online retailer Amazon's tax deal with Luxembourg.

McDonald's, Luxembourg
 
In December, the EU competition enforcer announced it was investigating a deal between McDonald's and Luxembourg, saying the U.S. fast food chain had not paid any corporate taxes in Luxembourg or the United States on royalties paid by franchisees in Europe and Russia since 2009.


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First Published: Aug 30 2016 | 3:45 PM IST

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