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After Blow to Europe Tax Havens, Some Promise More Staying Power

  • Netherlands, unlike Luxembourg, seen to have longer-term draws
  • EU rulings on Starbucks, Fiat not seen as having swift impact
On Wednesday, the EU announced that a tax deal between the Netherlands and Starbucks Corp., and another between Luxembourg and Fiat Chrysler Automobiles NV, constituted illegal state aid. It said each company owed as much as 30 million euros ($34 million) in back taxes.

On Wednesday, the EU announced that a tax deal between the Netherlands and Starbucks Corp., and another between Luxembourg and Fiat Chrysler Automobiles NV, constituted illegal state aid. It said each company owed as much as 30 million euros ($34 million) in back taxes.

Photographer: Brent Lewin/Bloomberg

Luxembourg and the Netherlands lost a bit of luster as tax havens for some of the world’s biggest companies this week, as the European Union fired its latest salvo aimed at multinational tax dodging.

Yet the Netherlands is on pace to maintain its attractiveness as a tax-friendly address for multinationals, said several tax advisers to big companies. That’s less likely for Luxembourg, they said.