Apple tax: Full war of words between the US and EU – Aftenposten

tax case against Apple has unleashed a fierce war of words between Brussels and Washington.

Danish Margrethe Vestager – European Commissioner as Tuesday presented Apple and Ireland for the big tax bill – rejects all accusations of Apple boss.

“Looting Cruise”

US Treasury Secretary Jack Lew accuses EU of unlawfully attempting to tax revenue form the basis of American corporate taxes. This is why tax revenue which accrues to the US Treasury, he says.

Politicians in the US Congress accuses EU to embark on raids on American territory with its tax claims against Apple, writes Reuters.

EU requirements: Apple must pay 120 billion in criminal tax

ultimately, the EU Commission’s behavior help to increase the federal budget deficit, alleges American politicians.

Adapts new regime

But EU Commissioner Western saws can have “cut the Gordian knot” with its decision to impose Apple penalty tax, writes the American newspaper the Wall Street Journal.

taxing multinational companies, which earns billions of dollars in Europe, but pays minimal tax, has long been considered to be an almost insoluble problem, not least because the EU does not have a common fiscal policy.

But Vestagers decision may prove to have quick impact on global corporate tax planning.

Crisis Meeting in Dublin

the prospect of getting transferred 13 billion euros (120 billion. million) in Treasury has created a political dilemma for the Irish minority government. This amount corresponds to around 7 percent of the country’s sovereign debt.

The government met on Friday to discuss whether it should follow Apple and appeal the decision of the European Commission to the European Court or accept the Commission’s decision, writes Reuters.

the political problem is a group of independent representatives who are dependent to ensure government political majority for its decision in parliament.

Finance Minister Michael Noonan has said that Ireland will oppose any decision in Brussels intervenes in the Irish tax regime with a corporate tax of 12.5 percent, while it is above 20 percent in most other EU countries.

He supports Apple’s appeal.

Top Searches the summit

the dispute between the EU and the United States risks overshadow all other issues on the G20 summit in China next week. Then meet the Prime Ministers of the countries with the largest economies in Hangzhou in Zhejiang province.

Tuesday demanded EU that Apple will refund up to 13 billion euros (120 billion. million) plus interest in tax to Ireland. The California-based company will appeal the decision to the European Court of Justice.

In October 2015 the European community demanded that the coffee chain Starbucks would repay 30 million euros (280 million. NOK) in tribute to the Netherlands. The Seattle-based company has also announced an appeal.

A finance unit of the Italian car company Fiat Chrysler was in October 2015 ordered by the EU to repay 30 million euros ( 280 million. million) in taxes to Luxembourg. The company has appealed the decision.

For nearly two years ago announced the EU that they had launched an investigation of Amazon.com on possible tax treaties in Luxembourg. The investigation is still ongoing.

Sources: AP / NTB

measures against international tax evasion is one of the topics at the Summit. Last year, the G20 countries endorsed several proposals to combat global corporate tax evasion, but it is each country must decide whether to follow the recommendations.

Apple could risk Norwegian tax bill

Apple CEO Cook dismisses EU Commission estimates that Apple only paid an average of 0.005 per cent tax in Ireland or $ 50 for every million in revenue.

“Political games»

– It is incorrect numbers. I do not know where they come from. It is not true. The truth is that Apple paid $ 400 million (3.5 billion. Million) in taxes to Ireland, and this amount was based on statutory Irish corporation tax of 12.5 percent, said Cook told the newspaper Irish Independent.

Apple claims to be the company that paid the most taxes in Ireland in 2014.

– in 2014 was our tax levels worldwide 26.1 percent, says Cook.

He claims Ireland is a pawn in a larger political game in Brussels which aims to harmonize taxes across the EU.

he argues the European Commission does not have grounds for filing tax claim and says he is looking forward to the forthcoming appeal by the government of Ireland.

several EU spotlight

the European Commission is investigating several other tax treaties concluded between EU countries and multinational companies.

This includes online bookstore Amazon.com Inc which has an agreement with Luxembourg taxation revenue paid to the Group’s subsidiary in the Principality. Amazon claims that the company does not receive any special treatment in Luxembourg.

Eight cases where giants have had to fork out billions

The EU has already imposed cafe chain Starbucks Corp. to paid more taxes by the activities of its subsidiary in the Netherlands, while fast food chain McDonald’s Corp. still investigated by the EU.

The EU has also had several cases against search engine giant Google for abuse of market power.

“A power struggle”

EU Commissioner Western saws shall meet US Treasury Secretary Jack Lew in Washington next week.

the case is at its core a power struggle between the US and EU on who should set the standards-whether it comes to taxes, privacy or finances-for global companies, writes the British business newspaper Financial Times.

the US government accuses Brussels of being jealous of successful US technology groups, the newspaper said.

last year, accused President Barack Obama EU Commission to be guided by protectionism.