“U.S. Treasury Secretary Jack Lew called on the European Union to reconsider tax probes targeting U.S. companies on Thursday, arguing that such moves represented disturbing precedents,” Reuters reports. “Lew made the plea in a letter to European Commission President Jean-Claude Juncker and EU antitrust chief Margrethe Vestager.”
While we recognize that state aid is a longstanding concept, pursuing civil investigations – predominantly against U.S. companies – under this new interpretation creates disturbing international tax policy precedents.. We respectfully urge you to reconsider this approach. — U.S. Treasury Secretary Jack Lew
“The European Commission has been pursuing so-called sweetheart tax deals involving U.S. firms such as Apple and McDonald’s in several EU countries, which Vestager says give them an unfair advantage in breach of state aid laws,” Reuters reports. “Apple Chief Executive Tim Cook last month personally lobbied Vestager on the tax case involving Apple and Irish authorities.”
Read more in the full article here.
MacDailyNews Take: Once again, blow up this broken “system” and design a proper one for modern times.
The U.S. corporate tax rate is way too high. Obviously. It forces drastic and convoluted tax avoidance efforts.
Under the current U.S. corporate tax system, it would be very expensive to repatriate that cash. Unfortunately, the tax code has not kept up with the digital age. The tax system handicaps American corporations in relation to our foreign competitors who don’t have such constraints on the free flow of capital… Apple has always believed in the simple, not the complex. You can see it in our products and the way we conduct ourselves. It is in this spirit that we recommend a dramatic simplification of the corporate tax code. This reform should be revenue neutral, eliminate all corporate tax expenditures, lower corporate income tax rates and implement a reasonable tax on foreign earnings that allows the free flow of capital back to the U.S. We make this recommendation with our eyes wide open, realizing this would likely increase Apple’s U.S. taxes. But we strongly believe such comprehensive reform would be fair to all taxpayers, would keep America globally competitive and would promote U.S. economic growth. – Apple CEO Tim Cook, May 21, 2013
SEE ALSO:
EU’s plans to tackle corporate tax avoidance hits first roadblocks — February 12, 2015
U.S. Treasury official to meet EU antitrust team over Apple tax deals – January 29, 2016
Apple and Google stand by Europe tax deals; Rupert Murdoch weighs in – January 27, 2016
Apple could trigger global tax war, potential breakdown of the international tax system – January 27, 2016
Apple CEO Cook lobbies EU antitrust chief over Irish back taxes – January 21, 2016
Think Ireland’s corporate tax is unfair? Wave goodbye to Apple and thousands of jobs if it’s changed – November 14, 2015
Apple announces 1,000 new jobs in Ireland as EU tax ruling nears – November 11, 2015
Apple tax probe won’t hurt Ireland, Finance Minister Noonan says – October 5, 2015
EU’s Vestager says will not complete tax inquiries of Apple, others in second quarter – May 5, 2015
Apple warns of potential ‘material’ financial damage from European tax probe – April 29, 2015
Apple may have to pay Ireland 10 years of back taxes – April 30, 2015
Ireland’s Prime Minister: Apple has nothing to fear from end of ‘Double Irish’ tax avoidance strategy – November 4, 2014