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In the letter, Engler cast doubt on the notion that the deal between Ireland and Apple was illegal and argued that the decision was made retroactively.
Apple is not saying anything of course.
The post Apple hit with $118m “back tax” payment in Japan appeared first on Punch Newspapers. The company has been a flashpoint in the debate over business tax reform not only because of its name recognition but also because it is the single largest corporate taxpayer in the country. They hold themselves to a high standard of objectivity and integrity.
Apple is one of many United States technology companies that have benefited from stashing cash overseas.
The tax notice specifically cited European Union state aid investigations as a risk to USA revenues. However, the multi-billion order from the EC is significant, even for a company like Apple.
Previously, companies could get authoritative guidance on what was permissible in this respect from the relevant national tax authorities.
Vestager appeared to confirm on Twitter that inquiries may be launched against companies associated with the Business Roundtable, which on September 16th sent a sharply worded letter to the heads of 28 European Union member states. All doubtful cases will tend to be referred to Brussels.
The tax bureau said it does not comment on individual cases.
It said the commission’s actions “promote tax uncertainty – and unless overturned they will disrupt trade and investment, with the most direct consequences to be borne directly by European Union countries and their citizens”. As the factual situation of every company is different, this leaves a lot of room for subjectivity and argument. Instead, Ireland, which risks losing jobs, has resolved to appeal the decision along with Apple, whose Irish subsidiaries account for 90 per cent of the company’s overall profits.
In contrast, some countries, Ireland included, apply a management and control test, such as that a company is tax resident in the country where it is controlled. Washington’s claim that the Apple taxes rightly belong to the U.S. is “difficult to comprehend”, Vestager told Handelsblatt.
As per the reports, the unit has since paid the amount. But Ireland is now told it must collect the money anyway. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
This precedent will increase uncertainty, jurisdictional disputes and compliance costs. The form of the Apple decision sends a directly contradictory signal.
The result was that Apple avoided tax on nearly all the profit generated from its multibillion-euro sales of iPhones and other products across the EU’s single market. Washington is anxious that mounting global tax obligations will eat away at what’s left for Uncle Sam.
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The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy.
