Posted on 09/02/2016 6:38:09 AM PDT by Swordmaker
DUBLIN (Reuters) - Ireland's cabinet agreed on Friday to join Apple in appealing against a multi-billion-euro back tax demand that the European Commission has slapped on the iPhone maker, despite misgivings among independents who back the fragile coalition.
A government spokesman said that following the cabinet's decision, it would ask parliament to endorse the legal challenge on Wednesday next week.
Finance Minister Michael Noonan has insisted Dublin would fight any adverse ruling ever since the European Union began investigating the U.S. tech giant's Irish tax affairs in 2014, arguing that it had to protect a tax regime that has attracted large numbers of multinational employers.
(Excerpt) Read more at finance.yahoo.com ...
The latest Apple/Mac/iOS Pings can be found by searching Keyword "ApplePingList" on FreeRepublic's Search.
If you want on or off the Mac Ping List, Freepmail me
I thought this was about real apples not the techie ones.
I believe the chief question will be where exactly in the wording of the joining-document....did they give the EU authority over their state taxation rules.
I believe what will happen though....over and over...the EU or it’s EU-court device....will continue to say that they have some authority over taxes. At some point, a dozen countries out of the EU will stand up and just say ‘no’....there is no such authority and challenge legitimate nature of the EU on taxes.
It’s the same with the EU needing to establish toaster regulation in the past couple of months. You just start laughing at what the EU chooses to get involved in. They need to just bring their legislative members in for 90 days a year and force them to return home for the remainder of the year.
Hey Micks, IREXIT will get their attention, or do you like rule by Belgian pedophiles?
Two of the most frightening words I’ve ever heard are “international bureaucrat”.
If we let Hillary sneak into the White House we’ll be dealing with plenty of them for years to come.
This is what happens when people in an inherently unproductive and wasteful career such as government service are “productive”: they find ways to be even more wasteful and fussy.
The truly frightening thing is that any time we give anyone a full time job of making rules, they have become VERY productive of rules. Those rules are never about limiting what they can do, but about what we can do.
protect a tax regime that has attracted large numbers of multinational employers.
= = =
It’s unfair that Ireland attracted more employers than their surrounding tax-happy neighbors.
Before any of this is paid, Hell will freeze over or the Clintons will tell the truth! Ain’t gonna happen.
It’s cheaper for Apple to pay the Irish politicians one time than to pay the EU tax forever.
The Irish get it. Apple employed a lot of people well for a long time. They’re blocking the EU from killing a golden goose to their economy.
“did they give the EU authority over their state taxation rules”
I know the EU has Value Added Taxation rules with minimums.
“EU governments should also ensure their corporate tax regimes are open and fair, and not designed in a way which might unfairly lure firms away from other EU countries, or otherwise erode the tax base there. To this end, they have signed up to a code of conduct pledging not to do this.”
https://europa.eu/european-union/topics/taxation_en
The Code of Conduct for business taxation was set out in the conclusions of the Council of Economics and Finance Ministers (ECOFIN) of 1 December 1997. The text of these conclusions •••
The Code is not a legally binding instrument
....
The criteria for identifying potentially harmful measures include:
•an effective level of taxation which is significantly lower than the general level of taxation in the country concerned;
•tax benefits reserved for non-residents;
•tax incentives for activities which are isolated from the domestic economy and therefore have no impact on the national tax base;
•granting of tax advantages even in the absence of any real economic activity;
•the basis of profit determination for companies in a multinational group departs from internationally accepted rules, in particular those approved by the OECD;
•lack of transparency.”
“For beneficiaries of those regimes on or before 31/12/2000, a “grand-fathering” clause has been provided under which benefits have to lapse no later than 31/12/2005, independently of whether or not they were granted for a fixed period. Some extensions of benefits for defined periods of time beyond 2005 have been agreed for measures in Member States and their dependent and associated territories.”
“The Anti Tax Avoidance Package adopted on 28 January 2016 is part of the Commission’s ambitious agenda for fairer, simpler and more effective corporate taxation in the EU. The Package contains concrete measures to prevent aggressive tax planning, boost tax transparency and create a level playing field for all businesses in the EU.”
“The tax systems in Member States also have to be in line with Community State aid rules. According to Article 87, paragraph 1 of the EC Treaty any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Member States, be incompatible with the common market. State aid rules apply regardless of the form the aid is given in, i.e. any kind of tax relief can constitute State aid if the other criteria are fulfilled.
“However, even if a measure fulfils the criteria for being State aid there are a number of situations where an aid can be deemed as compatible State aid (cf. Article 87, paragraphs 2 and 3 of the EC Treaty).”
http://ec.europa.eu/taxation_customs/business/company-tax/harmful-tax-competition_en
Article 87 of the EC Treaty (ex Article 92)
1.Save as otherwise provided in this Treaty, any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, insofar as it affects trade between Member States, be incompatible with the common market.
2.The following shall be compatible with the common market:
(a) aid having a social character, granted to individual consumers, provided that such aid is granted without discrimination related to the origin of the products concerned;
(b) aid to make good the damage caused by natural disasters or exceptional occurrences;
(c) aid granted to the economy of certain areas of the Federal Republic of Germany affected by the division of Germany, insofar as such aid is required in order to compensate for the economic disadvantages caused by that division.
3.The following may be considered to be compatible with the common market:
(a) aid to promote the economic development of areas where the standard of living is abnormally low or where there is serious underemployment;
(b) aid to promote the execution of an important project of common European interest or to remedy a serious disturbance in the economy of a Member State;
(c) aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the common interest;
(d) aid to promote culture and heritage conservation where such aid does not affect trading conditions and competition in the Community to an extent that is contrary to the common interest;
(e) such other categories of aid as may be specified by decision of the Council acting by a qualified majority on a proposal from the Commission.
http://ec.europa.eu/competition/legislation/treaties/ec/art87_en.html
In addition, "The Code" doesn't specify that some power-hungry bureaucrat gets to take her own private little Trotskyite hatchet murder view of commerce as Holy Writ and screw with everybody's national (and quite private) interests.
Taking those two items as starters (plus wondering out loud if BREXIT also includes Ireland), I'd really question exactly how long it's going to be before that EU Minister in particular plus the EU in general gets a very politely and diplomatically stated request from Ireland (at a dead minimum....I'd bet the UK at least would join in) to GFY.
Several billion Euros' worth and without benefit of lubricant....
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.