In separate comments to Reuters on the sidelines of the G20 on Saturday, Pascal Saint-Amans, director of the OECD Center for Tax Policy and Administration, called Apple’s tax planning “outrageous” but, like Juncker, said the decision was based on enforcing current regulations.
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The investigation found that Apple reached an extraordinary tax deal with Ireland, where the company’s European headquarters is located. They want to know that the tax legislation of member states is what will apply if they invest in those countries.
Apple’s aggressive response to a 13 billion euro (A$19 billion) tax ruling by the European Commission shows the USA technology company has no sense of its moral obligation to pay tax, according to the leader of the eurozone’s finance ministers. “This selective tax treatment of Apple in Ireland is illegal under European Union state aid rules, because it gives Apple a significant advantage over other businesses that are subject to the same national taxation rules”, it contended. He said that he was very confident that the “unjust ruling” would be overturned.
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Apple’s Chief Executive Tim Cook last week described the ruling as “total political crap”, but France and Germany have come out to back Brussels on the decision. Both Amazon and café chain Starbucks are also being investigated by the European Commission over the way in which they structure their affairs in the EU in order to minimise tax. The motion will affirm the Government’s commitment to the 12.5 percent corporation tax rate, the research and development tax credit, and the knowledge development box. It is important for governments to be able to show that “the people who are making money and doing well are paying their tax”, he said. But he said the case was different, and the Netherlands didn’t dispute the commission’s right to ensure fair competition. But the company will be relieved to learn that the Government of Ireland is in its corner.
