Starbucks and Fiat Chrysler’s tax avoidance deals to be ruled illegal |The Guardian

At the heart of the dispute over Starbucks’s tax rulings is the amount of taxable profits the US group attributes to a bean-roasting subsidiary in Amsterdam.

Because of favourable tax treatments available in the Netherlands, the coffee group’s tax planners have been keen to ensure as much of its profit as possible arises there. But the commission is expected to say Starbucks artificially inflated the internal price at which its Dutch roastery bought beans from another Starbucks company in Switzerland.

The Financial Times, citing sources close to the investigation, estimated the group’s likely additional tax bill could be about €30m (£22m). The decision against Fiat’s sweetheart tax deal is expected to be more costly. Starbucks and Fiat Chrysler’s tax avoidance deals to be ruled illegal | Business | The Guardian

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