EU to Probe Tax Affairs of Apple, Starbucks
Investigation Comes Amid Concerns About Generous Tax Arrangements
The probe by the European Commission, the EU's executive arm, will center on generous tax arrangements granted to global corporations in at least three EU countries—Ireland, Luxembourg and the Netherlands—which the commission worries may amount to illegal state aid.
The probe into Starbucks will focus on the company's so-called transfer-pricing arrangements in the Netherlands, the location of the company's European headquarters, one of the people said. Under those arrangements, multinationals set prices for goods or services that pass between different group entities. Experts say transfer prices can be used to minimize a company's tax bill.
One person familiar with the matter said the EU investigation will cover Apple's tax affairs in Ireland, also examining in part the issue of transfer pricing.