On 21 October 2015, the European Commission adopted its first two decisions on the compatibility of tax rulings with EU State aid rules. The first case related to a Dutch tax ruling granted to Starbucks. The second case involved Fiat’s finance company, based in Luxembourg. In both cases, the Commission held that the tax rulings contained illegal State aid to the benefit of Starbucks and Fiat. The decisions make it clear that the Commission considers that under certain circumstances, tax rulings may contain elements of State aid. In particular, the Commission objects to tax rulings that artificially, and without any economic justification, reduce the tax burden of a company and which create an unfair competitive advantage. At this stage the Commission made only a summary public
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The EU Commission orders claw back in the first decisions to emerge in its crackdown on corporate tax avoidance (Fiat / Starbucks)
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