More specifically, the Commission has ordered Luxembourg and the Netherlands to recover unpaid taxes in order to remove the unfair competitive advantage Fiat and Starbucks have enjoyed and to restore equal treatment with other companies in the market. The (in CESI’s view unfortunately rather modest) amount to be recovered is between €20 million and €30 million for each company. The Commission’s decision also means that the Fiat and Starbucks can no longer continue to benefit from the advantageous tax treatment granted by their tax rulings with Luxembourg and the Netherlands respectively.
The Commission announced that it will continue to pursue its inquiry into tax ruling practices in all EU Member States. CESI is in full support of the Commission’s actions, believing however that more substantial fines are necessary to achieve a significant deterrent effect against tax evasion and tax fraud by multinationals.