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