Report: Starbucks sweetheart tax deal unlawful, Europe rules

The European Commission has found the tax deal between the Dutch tax authorities and American coffee company Starbucks unlawful according to European rules.

This is according to German newspaper Frankfurter Allgemeine Zeitung, AD reports.

Over the past few months the European Commission has been investigating a number of so-called sweetheart tax deals that EU countries have made with multinational. The aim of these investigations is to find out whether the deals go against the European rules.

According to the German newspaper, the Starbucks deal with the Netherlands is one of the investigations that have been concluded and Brussels has come to the conclusion that the deal will not be tolerated. Sources in Brussels told the newspaper that Starbucks will officially be informed about the outcome of the investigation next week.

About a year ago the European Commission's preliminary opinion stated that the deal between Starbucks and the Netherlands amounts to State aid. Minister Jeroen Dijsselbloem of Finance then stated that the policy will be adjusted if further investigation determines that the deal is against the European rules.