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


Harrods plans biggest make-over in its 180-year history

24/11/2017

During the next three years, Harrods will be thoroughly revamped. The London luxury department store is investing a staggering 200 million pound (225 million euro) into its largest renovation to date and into new online services for its Chinese customers.

LensOnline targets German expansion

22/11/2017

Belgian LensGroup, which dominates Belgian online contact lens sales alongside LensOnline, is slowly conquering the European market. Following the Netherlands, Italy and Spain, it is now targeting the German market.

Europe halts geoblocking

22/11/2017

Negotiators for the European Parliament, the European Council and the European Commission reached an agreement on a geoblocking ban. With geoblocking, web shops could exclude visitors from other countries.

Hema targets extensive expansion in Germany

21/11/2017

Store chain Hema has major plans for Germany: in the next three years, it will open at least seventy new stores, which is a huge increase compared to the eleven it currently has in the country. Hema also targets shop-in-shops and stores in train stations.

Amazon almost ready to launch first cashierless Go

20/11/2017

According to certain sources, Amazon is currently hiring construction managers and marketers for its Amazon Go team. This move may suggest that the cashierless supermarket concept may be ready for prime time – for real this time.

Turnover for 100 largest web shops in Belgium grows 13.5 %

16/11/2017

Turnover for the top 100 web shops in Belgium grew 13.5 % from 3.7 to 4.2 billion euro. Digital sales for food items and household products have increased considerably.

Back to top