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Jobs minister has 'no particular concern' over EU ruling on tax deals

The Jobs Minister Richard Bruton says the Government is not 'particularly concerned' by a Europea...
Newstalk
Newstalk

13.55 21 Oct 2015


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Jobs minister has 'no...

Jobs minister has 'no particular concern' over EU ruling on tax deals

Newstalk
Newstalk

13.55 21 Oct 2015


Share this article


The Jobs Minister Richard Bruton says the Government is not 'particularly concerned' by a European Union ruling that 'sweetheart' tax deals between multinational companies and member states are unlawful.

The European Commission finding means coffee company Starbucks and car maker Fiat will have to pay as much as €30m each in back taxes to Netherlands and Luxembourg.

The Commission's statement said it had found, during a year-long investigation into the two tax rulings, that "most of the profits of Starbucks' coffee roasting company are shifted abroad, where they are also not taxed, and Fiat's financing company only paid taxes on underestimated profits".

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Fiat insisted its dealings merely amounted to a clarification of pricing rules and did not constitute state aid.

The Dutch government expressed "surprise" at the ruling, saying it was convinced its handling of Starbucks tax was in line with international standards.

That sentiment was shared by the company, which said the decision contained "significant errors".

Its statement added: "Starbucks complies with all OECD rules, guidelines and laws and supports its tax reform process".

"Starbucks has paid an average global effective tax rate of roughly 33% - well above the 18.5% average rate paid by other large US companies".

The reforms outlined earlier this month by the OECD aim to close international loopholes which allow multi-nationals to shift profits to countries with the cheapest tax regimes.

The EU warned it was still investigating tax practices in all of the bloc's 28 nations.

It is likely to increase the pressure on companies like Apple - which have been the focus of international scrutiny over the use of tax structures like 'the Double Irish' here.

However Minister Bruton says he is not worried.


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