US Treasury Secretary to meet with EU antitrust head, try to block collection of Apple back taxes
U.S. Treasury Secretary Jacob Lew is reportedly meeting with the head of the European Union's antitrust efforts, Margrethe Vestager, ahead of an anticipated ruling on whether the Irish government will have to collect back taxes from Apple.
Lew recently contacted Vestager, trying to persuade her not to order any collection of back taxes, according to Bloomberg. Sources noted that a few days ago, Vestager's office sent out two draft decisions with scenarios for how much Apple might owe.
Since 2014 the E.U. has been investigating whether Irish tax arrangements with Apple constituted unfair state aid in exchange for providing jobs in the country. In fact a preliminary ruling found against Apple and Ireland, but a final ruling has been waiting for some time.
Lew has previously claimed that American firms were being unfairly targeted in E.U. investigations of state aid, even though some European businesses have been subject to them as well. Companies like Amazon, Starbucks, and McDonald's have either come under scrutiny or already been ordered to pay back money to the countries granting special tax breaks.
Both Apple and the Irish government have denied any wrongdoing, and the latter has promised to fight any ordered payments.
The country's Finance Minister, Michael Noonan, recently said that the E.U. could issue a decision as soon as this month. He also cautioned, however, that the U.K.'s vote to leave the E.U. in late June might cause further delays.
Lew recently contacted Vestager, trying to persuade her not to order any collection of back taxes, according to Bloomberg. Sources noted that a few days ago, Vestager's office sent out two draft decisions with scenarios for how much Apple might owe.
Since 2014 the E.U. has been investigating whether Irish tax arrangements with Apple constituted unfair state aid in exchange for providing jobs in the country. In fact a preliminary ruling found against Apple and Ireland, but a final ruling has been waiting for some time.
Lew has previously claimed that American firms were being unfairly targeted in E.U. investigations of state aid, even though some European businesses have been subject to them as well. Companies like Amazon, Starbucks, and McDonald's have either come under scrutiny or already been ordered to pay back money to the countries granting special tax breaks.
Both Apple and the Irish government have denied any wrongdoing, and the latter has promised to fight any ordered payments.
The country's Finance Minister, Michael Noonan, recently said that the E.U. could issue a decision as soon as this month. He also cautioned, however, that the U.K.'s vote to leave the E.U. in late June might cause further delays.
Comments
Brussels has to pay for all those free loaders they have been letting into the EU over all these years. This the UK wants to leave they tire of having to let people in who want to live in the UK for free.
I just find it interesting the US care what the EU does about tax collection.
As I said before most of the Apple/Irish Deal dates back to the 1980's before Ireland came part of the EU, I would image most of the tax deal is grandfather. Also, this knife cuts both ways, when US companies are cutting jobs because they are loosing money, they are not allow to lay of EU workers, they have to give them a yrs notice and still cover lots of their costs, does the EU help US company get rid of dead weight. Also back in the 90's when Apple was trying to shut down it Ireland facility, the Irish Prime Minister came to apple and told them in no uncertain terms if they laid off Irish workers it would be very costly to Apple. Overall the EU has greatly benefitted from US companies setting up shop in the EU. They really need to think twice if they want to do this.
I'm not quite sure why you think it is worth subsidising any company for for the sake of having it in the country. At some point Apple won't have another choice but either paying proper taxes where they're realising their earnings or they'll have to repratiate it back to the US and pay taxes there -- either way is fine by me but the current behaviour of suppressing taxes in the name of the shareholder is highly asocial.
PS: If you seriously think the GBP will rebound you'll find yourself very mistaken soon enough. If Scotland figures out a way to leave there won't be a lot left other than tradition and pride.
The UK has better health system for starters, my current understanding is the way the EU works it tells each country how may people they have to take based on their ability to support and the UK can support more and has their fair share.
Keep in mind that Apple keeps most of its overseas money in the cayman island and only a fraction of the money their originated in Ireland or the EU. You have to keep in mind this also works bother way, the US does not tax foreign companies doing business in the US. This is what so many US companies have been moving their US Headquarters outside the US. They only way they can do it is for a non US company to buy them or do a reverse merger of sorts. This why the Pfizer deal feel through US has put a stop to these deal, but they been going on for the last 3 years. I think this has more to do with it than what will happen to apple since there is no deals going on to allow apple to bring it money back at a lower tax. But there is more than meets the eye going on here.
Free movement for EU citizens. No common extra-EU immigration policy.
If Scotland leave UK no one in England will notice. However Scotland will be in one hell of a mess, I doubt the EU would accept them so where would they go for handouts?
http://www.bbc.com/news/world-europe-34131911
If you're talking about EU immigrants, there is free movement and EU can't say any country to take an amount of people
And do you have any source for that claim that UK health system is better than the other countries from the EU?
Forcing companies to repatriate their overseas holdings would cause panic in the currency markets almost overnight and make our imports cost more and cut our buying power for many domestic goods. Then there is the other issue with foreign companies operating in the US that would be under pressure by their home countries to repatriate their earnings as a retaliatory measure. Foreign companies like Bayer, SAP, Toyota and Honda which do significant business here also heavily reinvest in the US. We would miss that money.