Dutch finance ministry denies Starbucks tax secrecy claims

DutchNews.nl, Thursday 28 March 2013

The Netherlands has denied claims by a Starbucks executive that the Dutch tax office asked it not to release details of its tax agreements, the Financial Times reports.

The coffee company’s chief financial officer told a British parliamentary inquiry in November he was bound by confidentiality agreements not to say what tax rate Starbucks pay in the Netherlands.

But junior finance minister Frans Weekers has now told parliament this is not true and companies are not required to keep tax agreements secret.

‘There is no hindrance from the Dutch government or tax authorities for individual companies to publicise their arrangements,’ the FT quoted the minister as saying. Weekers also said he is to contact the British parliamentary committee to make this clear.

Dutch hearings

According to the FT, Dutch MPs are to press Starbucks to explain its tax rulings in the Netherlands at hearings of their own.

Starbucks' European headquarters and its roasting facility for Europe, the Middle-East and Africa are located in Amsterdam.

British MPs are angry Starbucks UK pays a 4.7% fee to the coffee giant's Dutch arm for the right to use its branding and coffee recipe. The fee, which the paper says has been as high as 6%, reduces its UK tax bill.

Earlier stories

• Spanish, Italian, Portuguese firms use Dutch tax route
• Research into tax schemes is biased, say critics
• Multinationals and French state firms use Dutch tax deals
• Starbucks under fire in Britain over Dutch tax deal
• EU wants an end to letterbox companies
• Letterbox companies largely exempt from tougher rules
• The Netherlands is a popular tax haven for FTSE 100 firms
• Holland no longer a US tax haven
• More tax levied over tax haven income

Related Articles:

Australia to force multinationals to disclose tax arrangements - New

Shell and state bank ABN Amro are 'masters in tax avoidance': Volkskrant

Labour leader says letterbox companies will be tackled

George Osborne in pledge to help world's poor fight tax abuse

Starbucks to review UK tax arrangements

“.. A 6% premium had previously been charged by the business in the Netherlands. But this was negotiated down to 4.7% by Starbucks and the Dutch authorities. A similar negotiation could take place with HMRC. …”

Starbucks tax offer angers critics

Starbucks agrees to pay more corporation tax

Vince Cable criticises Starbucks over 'tax dodging'

Starbucks to slash paid lunch breaks and sick leave

Starbucks avoiding tax has a knock-on effect on homegrown business

Offshore Secrets

Leaks reveal secrets of the rich who hide cash offshore - New

Offshore secrets revealed: the shadowy side of a booming industry

$21tn: hoard hidden from taxman by global elite