Standards: Starbucks under scrutiny for low tax bills

If EU probe finds Starbucks received an unfair advantage, it could be forced to repay huge amount of unpaid tax

BRUSSELS/ LONDON: The European Commission suspects the Dutch tax ruling allows Starbucks, the world’s biggest coffee chain, to lower its taxable profit and tax bill in an odd way according to accounting rules.

The tax saving achieved by excluding costs from Starbucks Manufacturing EMEA’s cost base in the years examined was under €20 million.

Dutch Deputy Finance Minister Eric Wiebes said Starbucks deal was in line with international transfer pricing standards and consistent with the policy framework applied by the government.

Meanwhile, Starbucks said it was confident EU regulators would conclude that it had not received a selective advantage.

If the EU investigation finds Starbucks received an unfair advantage, the company could be forced to repay a huge amount of unpaid tax.

Published in The Express Tribune, November 16^th, 2014.

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