The European Union decided to Starbucks and Fiat to pay more taxes

Starbucks appealed the decision of the EU Competition Commission. Reuters

Starbucks and Fiat Chrysler asked to pay back taxes of about 20 million euros to 30 million euros after tax agreement is considered invalid.



Strabucks tax agreement between the Netherlands and Luxembourg finance company Fiat with it categorized as state aid, as decided Enterprises EU commissioner of competition, Margrethe Vestager.

Dutch and Luxembourg do not agree with the decision while Starbucks said it would appeal.
Further investigation of the tax deal, involving Apple and Amazon, is underway.

"The decision taxes artificially reduce the tax burden of a company is not in line with the state financial aid regulations in the European Union. It is not legitimate," said Vestager.

Margrethe Vestager confirms all companies must pay fair taxes. EPA

"I hope, through this decision today, the message can be heard by the member countries and companies alike."

According to all companies - large or small, multinational or not have to pay taxes fair.

Stated that the company uses the so-called 'transitional arrangements' price between the subsidiaries that make Starbucks profits abroad while Fiat to pay taxes based on the 'benefit, calculated low.'

According Vestarger, Fiat in Luxembourg do not even pay taxes 400,000 euros for the company last year was the Dutch branch of Starbucks pays less than 600,000 euro.

Last week it was revealed the social media giant Facebook is only paying £ 4327 for corporation tax in the UK in 2014. (bbc)