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Netherlands Recovers State Aid from Starbucks — Orbitax Tax News & Alerts

The Dutch government has reportedly recovered back taxes from Starbucks amounting to EUR 25.7 million for the years 2008 to 2014 as a result of the European Commission's decision that the Netherlands had granted Starbucks illegal State aid. The Commission's decision, issued in October 2015 ({News-2016-06-29/A/3- previous coverage}), concerned a 2008 advance pricing agreement (APA) concluded with Netherlands-based Starbucks Manufacturing EMEA BV. According to the decision, the APA did not reflect market conditions, resulting in an estimated reduction of Starbucks' Dutch tax burden by EUR 20 to 30 million since 2008.