European Union Is Grabbing Billions In Back Taxes

London-based Fiat Chrysler Automobiles, beer giant AB InBev, and Starbucks have all drawn fire from the European Commission over their tax deals with member countries. In total, the companies owe approximately $826 to $850 million in back taxes. Luxembourg, Belgium, and the Netherlands – the governments involved – have said they will appeal and the companies deny any wrongdoing. In total, Europe may recover close to $15.5 billion in retroactive tax assessments. While this is a lot of money, it’s just a piece of the amount of untaxed foreign profits held by U.S. corporations, which is now more than $2 trillion and only growing. While American politicians have wanted to get their hands on the money for years, the European Commission seems to be getting to it first. What that will mean for changes in the U.S. tax policy and future American corporate involvement in Europe remains to be seen. For now there are plenty of angry CEOs, American politicians, and European countries’ tax authorities cursing the Commission’s decisions.