moparnut
Administrator
Margarete Vestager, the European Union’s competition commissioner has ruled that the tax deal that Fiat had with Luxembourg was state aid and therefore illegal.
The BBC quoted Commissioner Vestager as saying: “All companies, big or small, multinational or not, should pay their fair share of tax.”
The commission said that so-called “transfer pricing arrangements” between subsidiaries let Fiat pay taxes on “underestimated profits.” Correct taxes could have been 20 times higher, according to their findings.
According to the BBC report, the actual taxes that must be paid are far lower than earlier estimates, ranging from $22.7 million to about $34 million. This puts the back taxes into the same range as Starbuck’s, one of the other companies pursued in this first investigation. (...) →
More...
The BBC quoted Commissioner Vestager as saying: “All companies, big or small, multinational or not, should pay their fair share of tax.”
The commission said that so-called “transfer pricing arrangements” between subsidiaries let Fiat pay taxes on “underestimated profits.” Correct taxes could have been 20 times higher, according to their findings.
According to the BBC report, the actual taxes that must be paid are far lower than earlier estimates, ranging from $22.7 million to about $34 million. This puts the back taxes into the same range as Starbuck’s, one of the other companies pursued in this first investigation. (...) →
More...