After Starbucks, Brussels looks into Dutch tax deals with Microsoft, Kraft

tax envelopeBrussels has turned its attention to Dutch tax deals with drug companies Pfizer and GlaxoSmithKline, as well as Microsoft and Kraft Foods, Trouw says on Tuesday, quoting ‘various sources’.

Two weeks ago, the European Commission declared the Dutch advance tax deal with Starbucks was illegal state support and said the finance ministry must claim back up to €30m.

Tax deals, which are secret, allow companies to move their profits around the globe, reducing their overall tax bill.

Trouw says the commission has asked for information about at least 10 other tax deals. ‘Requesting the rules does not automatically mean an investigation into state support will take place,’ a spokesman told the paper.

In total, officials in Brussels have asked for information about 300 tax deals in 23 different EU countries.

The Dutch tax office has made 14,619 advance tax agreements with international companies since 1991 and refused a further 1,590, the Financieele Dagblad said in June.

The cabinet backs the use of advance price agreements because they encourage job-creating multinationals to set up shop in the Netherlands and stop long disputes about tax bills.

 

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