ppietra
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EU-imposed Apple Irish tax bill could exceed $21.2B if appeal process fails
crowley said:ppietra said:crowley said:Soli said:crowley said:Soli said:1)So you're saying the EU doesn't do its job and yet can back-charge companies for abiding by the laws and agreements it set up before the EU was even formed?
2) Note, the double Irish arrangement didn't come to light in 2014 because of Lux Leaks. This is a well known tax loophole for corporations. If you clam that the EU only got wind of this in 2014 then the EU is much, much worse than I assumed.
Also, "remove ways companies can legally avoid paying taxes"? How do you do that, other than passing laws, setting standards, and expecting the enforcement authorities (the national tax offices) to abide by them? That's exactly what the EU has done, but battling tax avoidance is a massive international issue, and you've reduced it to a meanginless "well you just gotta do it". Are you now suggesting adding in a large scale EU auditing capacity of every member's national tax authority? You think that would result in fewer US companies being found lacking in their tax declarations and local arrangements?
This just sounds like the passing the buck to everyone but Apple, the entity that has undeniably gained the most from the situation up to this point. They were greedy, they got caught.
The EU can’t change irish tax laws or declare them ilegal retroactively, they can only accuse the irish tax authority of not following the law correctly, they aren’t even accusing Apple directly.
Again, the most obvious analogue is the US Federal and State laws or constitutions. The states can set whatever constitutions and law they want, but if there is a conflict with the federal then the federal is supreme, and the state has to back down.
Secondly if there was a conflict with irish law, the only thing the EU could do would be to fine Ireland for not correctly transposing EU frameworks to national law, they would not be able to go after any irish tax arrangement.
Last but not least... read carefully what the EU said.
"selective tax treatment of Apple in Ireland is illegal under EU state aid rules, because it gives Apple a significant advantage over other businesses that are subject to the same national taxation rules"
They are evoking an EU illegal state aid directive (competition law) because they believe Ireland gave Apple special treatment over others in Ireland that are subject to the same national taxation rules. It is about national tax law interpretation and if Ireland-Apple’s arrangement follows irish law, not if it follows EU laws. Notice that the ruling is over Ireland that is subject to that directive, not Apple directly.