The European Commission has begun formal investigation into the tax agreements made by coffee company Starbucks with the Netherlands.

The Starbucks probe is one of three investigations into tax deals. The others focus on Apple in Ireland and Fiat Finance and Trading in Luxemburg.

The investigation will look at ‘whether decisions by tax authorities … comply with the EU rules on state aid’, the Commission said in a statement.

Move

In April, Starbucks said it is moving its European headquarters from Amsterdam to London at the end of this year, in the wake of a row over its low tax bill.

Over the past 15 years, Starbucks has only paid profit tax once – in 2007 – and reported a loss on its operations in the other years, despite having more than 800 branches in Britain, the Financieele Dagblad says.

Starbucks paid some €700,000 in corporate taxes in the Netherlands in 2012.

British politicians and tax campaigners said the company was funnelling its profits through the Netherlands to other destinations with more favourable tax regimes.

Dutch junior finance minister Eric Wiebes said the Netherlands would cooperate fully with the investigation and he was convinced Brussels would find no evidence of unfair state support in the Starbucks deal.