Tuesday, August 30, 2016

Apple punished for a quarter of a century in a tax paradise – Republic

record, reaching 13 billion euro penalty for Apple is a signal for European governments, but also for enjoying their generosity multinationals. Margrethe Vestager rejects translations Apple, he did everything according to the law.

– If for years paid taxes at an effective rate of 0.05 per cent., Is przyjrzałabym exactly your bills – said Dane . But also he rejected allegations that the punishment for the Apple is excessive and results from the reluctance of Brussels to American companies. – I had no options to choose from. The amount of unpaid taxes was calculated at 13 billion euros – explained the Commissioner. The decision of going to appeal to both the Government of Ireland, and Apple.



25 years of freedom from the Inland Revenue

Since 1991, Apple practically does not pay taxes on products sold in Europe, Africa, the Middle East and India. All the gains went to the registered in the Irish Cork company Apple Sales International, which paid an effective tax of 0.05 per cent. The Irish government decided to relief, because he wanted it to be in Ireland was the main headquarters of the foreign company. Now Apple will have to pay applicable taxes calculated at the applicable rates in this country of 12.5 percent.

Similar investigations on tax settlements Brussels started against the Luxembourg-based European companies Amazon and McDonald’s. It also analyzes other matters and may announce the start of the subsequent investigation. Has issued a decision on the applicable Belgian scheme of tax for corporations and government in Brussels will have to recover from the company at least 700 million euros.



Situation ideal

The purpose of the Commission is to create a situation that companies pay taxes where you make a profit. But Vestager admits that the same decisions of illegal aid is not impossible to achieve, hence the European Commission proposes new rules for taxation of all international companies and wants G20 cooperation in this field.

In the case of Apple, the Commission shall decide only that the decision of the Irish government, constituted illegal state aid under EU law. Does not judge but the fact that Apple did right by transferring profits from Europe, Africa, the Middle East and India to Ireland. – Other countries may now apply for their due taxes, if they have lost to launder money used by Ireland – the Commissioner said.

Brussels keen to show that it defends the European taxpayer and thus on the viewfinder included International corporations whose practices over the years accepted. It so happened that many of them are American.

The decision of Brussels have a negative impact on relations with the United States. Already a few months ago committees. Taxes in the US Congress and Senate dealt with the investigation of the Commission and expressed a negative opinion on the subject.



Chilled relations

Peter Chase, were American diplomat, expert think tank GMF, believes that the decision of Brussels is unnecessary. According to him, it will worsen relations between the EU and the US and will affect US investments in Europe.

– But Apple benefited from this tax scheme for more than two decades. Why suddenly now, the Commission states that it is illegal? And why make him pay a huge amount of 13 billion euros of arrears, rather than simply to appeal to Ireland to stop the use of such solutions in the future – says American expert, “Rzeczpospolita”. According to him, the decision is unfortunate, because just the Obama administration was ready to help Europe forum OECD to combat the practice of tax evasion by multinational corporations. it also draws attention to concerns about the decision.

– the value of Apple products is created in the US, but not in Ireland. iPhone price reflects the value of intellectual property rather than a piece of plastic that I hold in my hand – he argues. According to him, such a line of argument will probably be adopted in appeals against decisions.

review

Dariusz Rosati, member of the European Parliament’s committee. tax fraud

European countries can compete and attract foreign companies honest methods using different tax rates, offering a variety of business environment, the quality of infrastructure. Alternatively, in the framework of joint tax bases to move different elements, so as to reduce the taxes paid in one country for the benefit of another. But they are not honest individual tax decisions that give individual businesses an advantage over others. Such decisions should at least be notified to the European Commission as state aid. I do not believe that the EC decisions were deliberately aimed at American companies. Europe depends on investments from the US.

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