CEO DATELINE - Business groups rush to Apple's defense after EU tax ruling
CEO DATELINE - Business groups rush to Apple's defense after EU tax ruling
- August 31, 2016 |
- Walt Williams
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The European Union has ordered Apple to pay the equivalent of $14.6 billion in unpaid taxes to Ireland, but at least three American business groups say such a demand undermines the EU's credibility on providing a stable tax environment.
Ireland is a EU member that lured Apple into the country with large tax breaks. However, the European Commission—the EU's executive body—declared Tuesday Ireland violated member rules by lowering taxes for the company. The commission ordered Apple to pay Ireland billions of Euros in unpaid taxes even though the country doesn't want the money.
The U.S. government was quick to condemn the commission's decision. Business groups also criticized the EU, with Business Roundtable calling the ruling "the latest act of aggression by the EU against a law-abiding U.S. company and sovereign government."
"It seems that following the law is no longer enough for globally-engaged American companies; a unilateral decision from a European regulator now has the potential to leave them with a ‘retroactive' tax burden that they were never required to pay in the first place," Business Roundtable CEO John Engler said.
Elizabeth Hyman, executive vice president of public advocacy for CompTIA, said the decision "undermines the notion of fairness and multilateral cooperation on tax policy."
"It creates an unwelcome climate of business uncertainty for companies doing business in the EU," she said. "U.S. companies invest directly in Europe and a decision such as this could impact such investment choices, as well as place a pall over general trade relations."
The U.S. Chamber of Commerce also weighed in even though Apple dropped out of the organization in 2009 because of business group's opposition to policies mitigating climate change. Myron Brilliant, the Chamber's head of international affairs, said the EU's decision threatens to drive away investment.
"Businesses should not be caught in the crossfire in a dispute between EU member states, which have exclusive competence over taxation, and the European Commission, which enforces State Aid laws," he said. "It is indeed telling that the Irish government plans to appeal a ruling that ostensibly would add several billion euros to its coffers."
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