“U.S. tax law gives the Obama administration power to double tax rates for European companies should it choose to dramatically escalate a dispute with the European Union over Apple’s tax bill,” Jason Lange reports for Reuters. “Section 891 of the U.S. tax code, passed in 1934 but never used, allows the president to double tax rates for citizens and corporations of any country the administration considered was discriminating against U.S. companies.”
“The U.S. Treasury on Wednesday declined to comment on whether Washington was considering such drastic measures, which Democratic and Republican lawmakers have proposed putting on the table due to what they see as overreach by the European Commission in a tax grab targeting American companies,” Lange reports. “Treasury Secretary Jack Lew has said the European Commission action appeared highly focused on U.S. companies but did not mention measures the United States might take. A Treasury spokesperson on Tuesday said the department would work with the EU to prevent erosion of tax bases.”
Lange reports, “The Treasury’s Assistant Secretary for Legislative Affairs, Anne Wall, told lawmakers in a letter in March the department was reviewing the provision.”
Read more in the full article here.
MacDailyNews Take: Won’t happen.
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