Apple, Google & others to face European Parliament hearing on tax deals

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.

13 Comments

tallest skil 14 Years · 43086 comments

About 8 years ago

It’s entirely possible the European Parliament will no longer exist before this case is finished.

entropys 13 Years · 4316 comments

jbdragon 10 Years · 2312 comments

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.

adamc 16 Years · 583 comments

tallest skil said:

It’s entirely possible the European Parliament will no longer exist before this case is finished.

I believe you are right there. "Under European Union regulations, extending tax breaks to one company but not others is considered illegal state aid." Yes how do you know that it is not extended to others Roger? "presumably in an attempt to influence her organization's decision." Another attempt by roger to ASS U ME... pathetic and sad roger.

copeland 21 Years · 298 comments

entropys said:

Under European Union regulations, extending tax breaks to one company but not others is considered illegal state aid.

In in other words, all your money belongs to the state, and anything the state chooses to let you keep is its gift to you.

Also on the specific, how do they know that the concessional tax rate wasn't available to others? How about it isn't really about the tax rate offered to the companies, but that the tax rate was lower than in other EU countries the aspect they don't like? If there is one thing Eurocrats hate, it's competitive federalism. Centralised control is clearly the goal. You know, the kind of thing the 20th century spent millions of lives working out didn't work.

if I was a Pom I know how I would be voting in the Brexit referendum.

You are just ranting because your beloved company is under legal pressure and you don't try to take a deeper look.

Go ask the small and middle size companies in Ireland if they get the same tax breaks as Apple gets. They don't.
If these tax breaks are offered to all companies, why does the law say different? Why do they have to sign secret contracts, hidden from the European commission.
The EU has no problem with different tax rates in different countries, but with different tax rates for different companies in the same country
Ireland has a much lower tax rate than the US. The regular tax rate in Ireland is 12%, but Apple (and many other multi nationals) got off with less than 2%
If a company has to sign a secret tax agreement you can't tell me that the lawyers and management don't know that it is on shaky legal grounds
and if we want to meet at strictly political ground with "centralized control" take a look at what fbi and doj are doing in the us