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Great tax paradoxes: The EU Commission
Apple has announced to its investors with its Q-10 filing to the SEC that they could be liable to pay back taxes for the past decade. Taxand Luxembourg discusses the current European commission whose paradoxical nature, has left them and their peers somewhat perplexed.
For Apple, this penalty would set records. Big names like Apple, Fiat, Starbucks and Amazon have been in the sightlines of the EU Commission for some time. Only today, however, did one of these companies hint at how much damage a Commission decision could inflict upon the finances of the company.
We are at the gate of a new era in how we perceive taxing corporations. We’ve accepted that the international tax system is broken and now we must choose whether we look forward to the future, or back to the past. There is no rhyme or reason to why some tax rulings have been challenged after more than 20 years and others slip by. No official criteria have been released, but it’s not a secret that big names tend to make a bigger splash. Although we may not all like the OECD’s recommendations for BEPS, the process has been clear from day one. Investors and business owners know what to expect and rules will be applied uniformly across the board.
Quality tax advice, globally
Voters may be satisfied with the simplified headlines in the news: big companies deserve to pay and small companies should be afforded all advantages, but how “fair” is it really to adopt a two-faced approach to business?