Roger Fingas
U.S. Treasury Secretary Jacob Lew is reportedly meeting with the head of the European Union's antitrust efforts, Margrethe Vestager, ahead of an anticipated ruling on whether the Irish government will have to collect back taxes from Apple.
Lew recently contacted Vestager, trying to persuade her not to order any collection of back taxes, according to Bloomberg. Sources noted that a few days ago, Vestager's office sent out two draft decisions with scenarios for how much Apple might owe.
Since 2014 the E.U. has been investigating whether Irish tax arrangements with Apple constituted unfair state aid in exchange for providing jobs in the country. In fact a preliminary ruling found against Apple and Ireland, but a final ruling has been waiting for some time.
Lew has previously claimed that American firms were being unfairly targeted in E.U. investigations of state aid, even though some European businesses have been subject to them as well. Companies like Amazon, Starbucks, and McDonald's have either come under scrutiny or already been ordered to pay back money to the countries granting special tax breaks.
Both Apple and the Irish government have denied any wrongdoing, and the latter has promised to fight any ordered payments.
The country's Finance Minister, Michael Noonan, recently said that the E.U. could issue a decision as soon as this month. He also cautioned, however, that the U.K.'s vote to leave the E.U. in late June might cause further delays.
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119 Comments
IMHO US Companies including Apple should be looking to the UK. It seems pretty clear both countries would like to come to trade agreements and with the exchange rate what a great time to buy into or outright take over UK companies. In addition, if the UK is smart they will offer as good tax breaks as Ireland for company relocation there and they don't have to ask Brussels! I am sure the UK £ will rebound sooner than later and be even stronger than it was if not far stronger than the Euro.
The EU a.k.a. Germany are just extorting U.S. firms like Apple with their "back taxes" scheme.... If no international body (WTO?) will step in and prevent this type of behavior, the U.S. needs to start playing equally dirty with all big European corporations doing business in the United States. (BMW, VW, etc.) Meanwhile we should be strengthening our future economic ties with the U.K., who, unlike Germany, are actually our friends.
Time for Irelabd to leave the EU and tell Brussels to go to hell.
Hmm, any additional taxes paid overseas would just reduce a U.S. company's repatriation tax burden here in the states? That's gotta irk the Treaury secretary.
In the middle of watching Capitalism: A Love Story.