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EU Commission Announces Decision that Illegal Tax Advantages were Provided in FIAT and Starbucks State Aid Cases

22 October 2015

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Approved Changes

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European Union-Netherlands-Luxembourg

On 21 October 2015, the European Commission announced its decision that Luxembourg and the Netherlands have granted selective tax advantages to FIAT Finance and Trade and Starbucks respectively, which are illegal under EU State aid rules. The decision follows investigations launched in June 2014 into the tax rulings given for the companies by the two countries that resulted in artificially lowered tax burdens. FIAT Luxembourg FIAT Finance and Trade in Luxembourg provides financial services, such as intra-group loans, to other FIAT group car companies. It engages in many different transactions with FIAT group companies in Europe. Based on the activities...