The Commission is now actively scrutinising multiple tax opinions given to multinationals in Ireland and focusing on around six that could lead to Apple-style investigations, the Sunday Business Post said, without quoting any sources. There was an attempt to bully him, by president [Nicolas] Sarkozy in particular, to bring the corporation tax rate up to 15 per cent as a quid pro quo for the bailout programme. “A robust legal challenge before the courts is essential to defend Ireland’s interests”.
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Juncker defended the EU’s tax order on Apple against USA criticism. It also paid $400 million in current United States corporate taxes on those profits.
A levy by the European Commission of $14.3 billion plus interest in Irish taxes on the ostensibly US firm Apple called attention to the loaded question of to whom – if anyone – do large internationally operating firms pay taxes?
This is a rare instance in which the U.S. Treasury, which has been trying to crack down on tax avoidance schemes, has found itself on the same side of U.S. corporations.
Many fear the result could mean more profits earned by USA corporations could be flowing into the pockets of European tax offices. “This is a decision based on the facts of the case, looking into Apple Sales International, how they are arranged within Ireland, and the profits recorded there – how they are taxed. Apple has always been about doing the right thing, never the easy thing”.
The toughly worded comments reflected the political pressures on governments at a time of weak global economic growth that is fueling demands to protect local industries.
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The trouble is, asking government to accept less money from people who earn it is like asking Dracula to settle for less blood. Vestager said figures used to calculate the amount of back taxes owed by Apple came from the company itself, as well as US Senate hearings. So the European Union launched a drive to combat tax avoidance by investigating the deals that allow multinationals to slash their bills in countries like Luxembourg, Ireland and the Netherlands. The Commission said that the Irish Government had “artificially lowered” Apple’s tax bill, and ministers are not happy with the accusation. Or do they care?
