Landmark tax decision could cost Fiat and Starbucks tens of millions

A landmark tax avoidance decision could cost Starbucks and Fiat tens of millions of euros this week.

The European Union is expected to release its decision on the two cases on Wednesday.

Sources say EU Competition Commissioner Margrethe Vestager is more concerned with setting a legal precedent to limit multinationals’ tax avoidance than imposing heavy penalties, according to the Financial Times.

People involved in the Starbucks case said less than €30m will be sought in back taxes, while people close to the Fiat case believe they will owe more than Starbucks but less than €200m.

The Financial Times said the rulings will be the tip of the iceberg, with potentially larger decisions against Apple and Amazon on the way.