10/20/2015 12:33 EDT | Updated 10/20/2016 01:12 EDT

Fiat Chrysler denies getting Luxembourg state aid as EU expected to demand back tax repayment

BRUSSELS — Automaker Fiat Chrysler has denied receiving state aid from Luxembourg ahead of an expected ruling by the European Union's competition watchdog that the company must pay millions in back taxes.

Fiat Chrysler said in a statement Tuesday that an agreement it reached with the government of Luxembourg was aimed only at clarifying pricing rules and "did not result in any state aid."

The European Commission is expected to rule on Wednesday that Fiat Chrysler in Luxembourg and Starbucks in the Netherlands benefited from sweet deals for their tax payments.

The Commission polices state aid and antitrust laws and has been tightening loopholes in EU legislation that have allowed multinational companies avoid paying some taxes.

The Associated Press