Apple Inc. and Amazon.com Inc. got a preview of what the European Union may have in store for them after regulators ordered Starbucks Corp. and a Fiat Chrysler Automobiles NV unit to repay millions of euros in back taxes.
The EU said the coffee company and the Italian carmaker were handed illegal fiscal deals by the Netherlands and Luxembourg and ordered them to repay as much as 30 million euros (US$34 million). Wednesday's decision sets up a showdown with Apple and Amazon, which are also embroiled in the tax probe.
“These first two decisions may just be testing the waters to see what the reaction will be, before they start with the really big ones—Apple and Amazon,” said Marc Sanders, a partner at Taxand, a global firm of tax advisers. The Apple and Amazon cases “will have the same results, potentially with higher recoveries.”
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