“The European Union official who slapped Apple with a $14.5 billion back tax bill signaled over the weekend she’s not done yet with American companies that park profits offshore to lower their tax bills,” John W. Schoen reports for CNBC. “Those profits swelled to some $2.4 trillion — or about 14 percent of U.S. gross domestic product, according to new estimates released Monday.”
“The EU’s antitrust commissioner, Margrethe Vestager, was in Washington on Monday to meet with U.S. officials, including Treasury Secretary Jack Lew, who has been bluntly critical of a series of EU investigations into taxes paid by American companies on profits held outside the U.S.,” Schoen reports. “Both Apple and the Irish government are appealing a ruling last month that the tech giant owes the Irish Treasury $14.5 billion, based on a government tax break that the EU ruling said qualified as ‘state aid.'”
“U.S. Treasury officials have also blasted the ruling, saying it sets up the EU as ‘”supranational tax authority.’ The bloc’s efforts also threaten to cut into the Treasury’s revenue collections because taxes paid to a foreign country can be deducted from a company’s U.S. tax bill,” Schoen reports. “The move has also drawn fire from U.S. corporate groups, including the Business Roundtable, which represents 185 CEOs of large companies with combined revenues of $7 trillion. On Friday, the group sent a letter to the leaders of all 28 EU member countries, urging them to work to overturn the Apple ruling and end the tax probes.”
Read more in the full article here.
MacDailyNews Take: The EU’s antitrust commissioner, Margrethe Vestager, is a fool.
If you play with fire (ask those who settled for a Samsung phone instead of a real iPhone), you’ll get burned.
Anyone who decides to set up a business in a European Union member country today is insane. — MacDailyNews, August 30, 2016
There’s nothing like the world’s preeminent superpower playing hardball with some quasi-governmental political confederation that’s already been hit with one very significant defection and the existential threat of widespread desertions hanging over its collective head. — MacDailyNews, August 25, 2016
SEE ALSO:
The ‘Brexit-Apple’ connection: What in the world was Margrethe Vestager thinking? – September 12, 2016
EU ministers line up to take tax bites out of Apple – September 12, 2016
Former EU competition commissioner: Vestager claim that Apple owes back taxes an incorrect use of EU law – September 2, 2016
Irish government to fight EU on Apple tax – September 2, 2016
Treasury accuses EU of trying to steal U.S. tax revenues with Apple decision – September 1, 2016
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