Roger Fingas
Apple, Google, IKEA, and McDonald's will together face a European Parliament hearing on Wednesday, called amid European Commission investigations into whether such multinationals were given preferential tax deals by some nations.
The Parliament's tax committee won't have the authority to order any changes at the hearing, according to Reuters. Starbucks and Fiat Chrysler have in fact declined to appear, each citing the fact that they're appealing earlier Commission rulings ordering them to pay back taxes. Those rulings enjoined the Netherlands and Luxembourg to collect the money, respectively.
All of the companies presenting on Wednesday have insisted that they follow European tax laws. Apple, accused of benefiting from Irish tax breaks, has been especially vocal — CFO Luca Maestri recently claimed that a "fair outcome" of the investigation would mean "zero" owed in back taxes.
Under European Union regulations, extending tax breaks to one company but not others is considered illegal state aid. Some governments may have been willing to break the rules, however, to attract more jobs and revenue, particular given the tough economic climate Europe has weathered in the past several years.
Apple is still awaiting a Commission ruling, which has been delayed multiple times. In January Apple CEO Tim Cook met with the Commission's competition head, Margrethe Vestager, presumably in an attempt to influence her organization's decision.
Charles Martin
Malcolm Owen
Andrew O'Hara
William Gallagher
13 Comments
It’s entirely possible the European Parliament will no longer exist before this case is finished.
I don't see any of these company's doing anything wrong! They were given tax breaks. Guess what, we do that here in the U.S. all the time having states giving Tax breaks to large company's to come build and do their business there. I don't see anything wrong with it. They're bring jobs into that state. All those new Jobs are Taxpayers!!! In the end bringing more money into the state. Apple and the others didn't create these laws. The Politicians did, and now they don't like their own handiwork!!! They see all this money they're not getting and now saying. wait, we want a cut of that big pie also to spend on more government crap!!! Now if the state or country did something wrong, THEY have to pay up, not the company that was following all the rules. It's their job, just like it's your job when you're doing your taxes to pay as little as you can. Take all the Deductions you can, etc. Who willing goes, Ya, I'll pay my fair share and pay it all and extra just in case. Not take any deductions.