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Implications of the Starbucks and Fiat state aid decisions

Speed read

The European Commission says that the Starbucks and Fiat tax rulings are unlawful state aid and that €20m to €30m should be repaid by these companies. Decisions in relation to Amazon and Apple are yet to come. Is it the role of the competition authorities to investigate detailed transfer pricing methodologies? Attention is likely to move onto others, with Luxembourg a particular focus. Groups with favourable rulings anywhere in the EU should review their position. Consider acting before an approach from the Commission to minimise adverse publicity. State aid needs to be considered in any future planning.

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