EU Demands Starbucks Pay Back “Illegal” State Aid

The European Union is demanding that Starbucks, the US coffee chain, and carmaker Fiat repay up to $34 Million in tax breaks they received from the organization, in a major ruling to cut down on tax deals that global multinational corporations often shop for.

EU’s antitrust Commissioner said on Wednesday in support of the ruling, that “all companies, big or small, multinational or not, should pay their fair share of tax”.

The Commission polices state aid and antitrust laws and has been tightening loopholes in EU legislation that have allowed multinationals to avoid millions in taxes.

ABC’s Tom Rivers joined us from London, England.