It’s also in direct violation of many European countries’ treaty obligations. Slamming a company with a giant tax bill - years after the fact - sends exactly the wrong message to job creators on both sides of the Atlantic. Paul Ryan, speaker of the US House of Representatives, issued a statement on Tuesday in which he said: “This decision is awful. “The Commission’s actions could threaten to undermine foreign investment, the business climate in Europe, and the important spirit of economic partnership between the US and the EU,” it said. The US Treasury expressed disappointment at what it called an “unfair” decision by the European Commission to assess taxes retroactively and warned that it could have wider ramifications. US political leaders reacted with anger on Tuesday to an EU decision to hit Apple with a record-breaking €13bn tax penalty, setting the stage for possible US retribution and highlighting the volatile politics around international corporate tax issues. The Financial Times reports Apple Ruling Sparks Angry Reaction in US.
The nannycrats in Brussels want no part of Ireland controlling its own fate. Mortgage and Interest Rate Shock, Never in History Have Rates Risen So Fast companies that have units there, employing a combined 140,000 people, according to the American Chamber of Commerce in Ireland. The iPhone-maker is one of more than 700 U.S. “To do anything else, it would be like eating the seed potatoes,” Noonan told broadcaster RTE on Tuesday, adding a failure to fight the case would hurt future generations.Īpple and Ireland deny any wrongdoing and say no sweetheart deal was ever agreed. While the Apple ruling doesn’t directly threaten the 12.5 percent rate, the government has promised to stand by executives it says are helping the economy. Even when Ireland was forced to seek an international bailout six years ago, it resisted pressure to change how it taxes companies. The country’s corporate tax regime is a cornerstone of its economic policy, attracting Google Inc.
For the government, though, the stakes are higher. He drew fire from opposition lawmakers who say Dublin should take the money. Irish Finance Minister Michael Noonan on Tuesday vowed to fight a European Commission ruling that could force the world’s richest company to pay it at least 13 billion euros ($14.5 billion), more than twice the country’s entire 2015 corporate tax take and equivalent to about $3,000 for every man, woman and child.
So why doesn’t the government want the money? “Apple had helped create and sustain more than 1.5 million jobs across Europe, follows the law and pays all the taxes it owes,” said Apple CEO Tim Cook.īloomberg explains Why Ireland Doesn’t Want Apple’s $14.5 Billion in Back Taxes.Īpple’s billions in back taxes could cover the entire annual Irish health budget, build about 100,000 homes for the poor or pay off a chunk of the nation’s debt.
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