By Tom Fairless
BRUSSELS--European Union regulators said Wednesday they have
opened formal investigations into the tax affairs of Apple Inc.,
Starbucks Corp. and a Luxembourg-based division of Fiat SpA, amid
concerns that multinational companies enjoy sweeter tax deals than
are permitted under EU law.
The probe by the European Commission, the EU's executive arm,
will center on generous tax arrangements granted to those global
corporations in three EU countries--Apple in Ireland, Fiat Finance
and Trade in Luxembourg and Starbucks in the Netherlands. The
commission worries that the companies' tax deals may amount to
illegal state aid.
The probes will focus on so-called transfer-pricing
arrangements, which can help minimize a company's tax bill.
"In the current context of tight public budgets, it is
particularly important that large multinationals pay their fair
share of taxes," EU antitrust chief Joaquín Almunia said in a
statement.
Write to Tom Fairless at tom.fairless@wsj.com
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