Netherlands appeals European ruling on Starbucks | RetailDetail

Netherlands appeals European ruling on Starbucks

Netherlands appeals European ruling on Starbucks

The Netherlands have appealed the European Commission's ruling. It does not agree with the decision that the agreement between Starbucks and the Dutch government actually consists of illegal state aid.

Designed to avoid taxes

The European Commission feels Starbucks has not paid enough taxes in the Netherlands, because it had an agreement in place to pay royalties to an affiliate company in the United Kingdom as a fee for the roasting formula to create "actual" Starbucks coffee. This is how it managed to lower its Dutch-based profit and therefore taxes, but in actuality, its British company is a simple mailbox company.

 

That is why the European Commission equated this with state aid, which is only allowed under very strict regulations in Europe. An additional payment of 20 million euro needs to follow, the first time the European Commission actually demanded a recovery.

 

Netherlands points to OECD

The Dutch Ministry of Finance does not agree with the European ruling and State Secretary Eric Wiebes says the deal with Starbucks is in line with the OECD (Organization for Economic Cooperation and Development) guidelines.

 

Wiebes feels this ruling creates uncertainty and ambiguity about the way the rules need to be applied and that is also why the Dutch government has appealed the decision.

 

The appropriate taxation of multinationals has become an important theme nowadays, especially as many countries want increased tax income. That increases pressure to get a decent level of taxation, while many smaller business feel they have to pay a lot more compared to multinationals who have managed to walk the road of least taxation. Luxembourg has previously been condemned for a similar deal with Fiat.

Questions or comments? Please feel free to contact the editors


Walmart and Microsoft team up to beat Amazon

18/07/2018

Two major American companies join forces to try to beat the omnipresent threat of Amazon: Walmart (Amazon's biggest competitor in retail) and Microsoft (Amazon's main rival in cloud services) have signed a strategic partnership for the next five years.

Sales of PCs grows for the first time in six years

13/07/2018

For the first time in six years computer sales showed growth again: in the second quarter of 2018 they increased by 1.4%. According to research firms Gartner and IDC, the sales increase is mainly due to growth in business markets.

Retailhub Inspiration Tour: the customer journey becomes very different

09/07/2018

Thanks to Retailhub by RetailDetail, Antwerp has one more unique retail hot spot. Professionals can experience the future of retail in the Benelux' only retail inspiration platform, with 1250 sqm of innovative technology and huge trends.

Breakthrough in Karstadt-Kaufhof merger

05/07/2018

Canadian Hudson’s Bay and Austrian Sigma Holding have not reached a preliminary agreement about the merger of their respective department store chains Kaufhof and Karstadt: the Canadian company says it has only signed a letter of intent.

Alibaba CEO and Belgian PM discuss investment in Liège

04/07/2018

Alibaba founder Jack Ma has discussed a possible investment in Liège, Belgium with the country's prime minister Charles Michel. Afterwards no decisive statements were made by either party.

Toys "R" Us closes American stores amidst reboot hopes

02/07/2018

Final curtains for Toys "R" Us in the United States: all the stores have closed and 30,000 employees are laid off. Against all odds, some however still hope for a second life for the troubled chain.