Dutch government: Starbucks tax deal is legit

AP News
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Posted: Nov 14, 2014 7:03 AM

AMSTERDAM (AP) — The Dutch government says it did nothing wrong when it struck a tax deal with Starbucks that the European Union Commission alleges is so favorable to the company it amounts to state aid.

The Commission issued a report Friday on its findings in an ongoing investigation into Starbucks' Dutch tax deal. The report describes how Starbucks funnels European profits to the Netherlands but pays little tax, using a strategy pre-approved by Dutch tax authorities. Starbucks had its European headquarters in the Netherlands in 2011 and 2012 but paid less than $1 million tax there in those years.

Dutch minister Eric Wiebes said in a response the agreement "fits completely within the international standards" and the Cabinet's strategy for "creating an attractive investment climate."

Starbucks has a month to respond.