“The United States has accused the European Union of grabbing revenue intended for U.S. coffers when it ordered Apple Inc. to pay up to $14.5 billion in back taxes, a decision that could cause friction at an international summit in China next wee,” Jason Lange reports for Reuters. “‘I have been concerned that it reflected an attempt to reach in to the U.S. tax base to tax income that ought to be taxed in the United States,’ U.S. Treasury Secretary Jack Lew said on Wednesday at an event to discuss Washington’s position ahead of a meeting of the Group of 20 industrial nations in China next week.”

“Earlier this month, the Treasury issued a detailed legal argument that the EU Commission’s approach went against European laws. Lew said making Apple pay higher taxes in Ireland could let the company deduct those payments from what it owes to the United States, reducing U.S. tax revenues,” Lange reports. “‘We think that it undermines the environment in Europe for international business because it creates uncertainty that ultimately will not be good for the European economy,’ Lew said at an event hosted by the Brookings Institution in Washington.”

“Apple has said it will appeal the ruling, issued on Monday. Critics in the U.S. Congress have denounced the move as a predatory money grab that would encroach on U.S. government jurisdiction and ultimately add to the federal deficit,” Lange reports. “Lew said it appeared unlikely America would reform business tax laws before Obama’s term ends in January, but that progress could be made early in the next administration. The United States will hold a presidential election on November 8.”

Read more in the full article here.

MacDailyNews Take: Hopefully this EU tax grab fiasco will lead to some common sense solutions.

SEE ALSO:
Irish residents opposed to EU’s tax demand of Apple – September 1, 2016
Apple Inc. pushes back against EU tax grab – September 1, 2016
Apple may repatriate billions of dollars next year after new U.S. President takes office – September 1, 2016
U.S. tax code allows for dramatic retaliation against EU overreach in Apple case – September 1, 2016
Apple CEO Tim Cook on EU tax demand: ‘No one did anything wrong here and Ireland is being picked on… It is total political crap’ – September 1, 2016
U.S. Treasury: The European Commission’s retroactive tax demands on Apple are unfair – August 30, 2016
EU demands Apple pay massive $14.5 billion in taxes plus interest – August 30, 2016
U.S. government warns EU: Do not hit Apple with a massive back tax bill – or else – August 25, 2016