With a long-running investigation into the legality of Apple’s tax arrangements in Europe not expected to end any time soon, the company will come under additional pressure tomorrow when it is called before the European Parliament’s tax committee.
Reuters reports that the company will be one of four companies asked to explain their European tax arrangements.
Apple, Google, McDonald’s and IKEA will be asked about their European tax deals on Wednesday as EU lawmakers ratchet up the pressure on multinationals to pay more tax on their profits locally.
The committee has no power to demand changes, but it will further add to the PR pressure on Apple at a time when the public mood in Europe is hostile to legal but aggressive tax-avoidance strategies.
I recently set out the reasons I think the company will eventually have to pay an estimated $8B in back taxes.
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“…explain their European tax arrangements”
LMAO! Arrangements ‘Europe’ put in place themselves. Good grieve, what has the world come to (don’t answer that). The world is in a dire state.
I worked in the European Parliament for over three years. i wouldn’t want to name names, but trust me: most of them there havent a clue about very much and their egos bounce off the walls. They like to be seen to do stuff, so this falls under that. Ultimately, it’s not really up to the EP about national tax policies.
While this indeed involves national tax structure, it seems the EP is looking at the bigger picture here, which seems, to me, a European affair:
Double Irish With A Dutch Sandwich
http://www.investopedia.com/terms/d/double-irish-with-a-dutch-sandwich.asp
V true. And the European commission has already fined Ireland etc but the EP is mostly on a listening/learning exercise, and being seen to response to their constituencies (votes votes votes)
are they hiring in the European Parliament I want to work there…
Easiest way is to work for an MEP or political group. Eurobrussels.com isn’t a bad place to look.
And this is the cowardness, stupidness and egocentrism that’s the “great” European Union, no wonder the UK wants to Brexit.
If the countries made those arrangements, then why do companies have to answer to the damn EU that doesn’t have anything to do with the business operating anywhere?
It should be ECB vs member states, not ECB vs American companies, that’s simple.
The problem is the cowardice, because the EU is made of Irish politicians too, and although the rate is low, Apple pays their taxes there which is a lot for Ireland.
“… no wonder the UK wants to Brexit.”
I almost read that as “breakfast” instead of “Brexit”. 😂
… I’m sorry. I’ll show myself out.
If the authorities believe that the rules have been broken then it makes sense for them to interview both parties.
It is rumoured that Apple’s effective tax rate outside of the USA is less than 2%. When large firms are able to negotiate such low tax rates, it harms the smaller firms.
I hardly think the EU can be accused of cowardice. Any one that is willing to risk your wrath might be considered crazy, but a coward, no, never…
I for one would like to know if Apple’s decision to charge all EU customers the higher (23%) Irish VAT rate on iTunes purchases was a direct result of any “sweet heart” deal. Both Google and MS charged the rate of VAT applicable in the country that the customer lived in.
I believe they have their iTunes Media Server, or at least Akamai, distribute it from Ireland because of ‘said tax issue’. Just be glad they didn’t put their servers in Hungary. (https://en.wikipedia.org/wiki/Tax_rates_of_Europe)