3 ms·

using case law that didn't even exist at the time You know its bad when the US Treasury department even disagrees with the EU commission

icebraining 10y ago
Fiscal State Aid has been explicitly illegal since the 90s. Why would case law be needed?
hackuser 10y ago
> You know its bad when the US Treasury department even disagrees with the EU commission The US Treasury may be biased in favor of their constituent, whose CEO recently claimed is the largest taxpayer in the country,[0] and other constituents in similar circumstances. [0] http://www.washingtonpost.com/sf/business/wp/2016/08/13/2016/08/13/tim-cook-the-interview-running-apple-is-sort-of-a-lonely-job/ http://www.washingtonpost.com/sf/business/wp/2016/08/13/2016...
- mpweiher 10y ago
  Not just that. Once the income has been taxed outside the US, it can no longer be taxed by the US. And so far, the US Treasury considered this income as "not taxed", meaning it would have been taxed at the corporate US tax rate when and if moved to the US. Which is why Apple hasn't moved that money to the US, and has something like $190 billion sitting outside the US. So the treasury is being extremely disingenuous here, they just want to be the ones to tax this income.
  - cloudjacker 10y ago
    Which is their prerogative.... You can't be on the side of "pay taxes for the sake of paying taxes because..... society and fairness!" without having an opinion on who and what your expropriated productivity is supporting Nobody at Apple or the Treasury Dept said that pledge for 13 years of their life to support roads in Ireland
    - mpweiher 10y ago
      This is income that was generated in the EU and taxed in the EU, except at ludicrously low rates due to a vehicle the Irish government came up with for Apple: a headquarter of their Irish operation that (for Irish tax purposes) is located nowhere in the world. So, no, it is most definitely not their prerogative, just as it isn't the prerogative of the German or Irish government to tax Apple on their US income.
  - nodamage 10y ago
    > Not just that. Once the income has been taxed outside the US, it can no longer be taxed by the US. Just to clarify, money that is taxed outside the US gives you a credit towards your US taxes. So if the money is taxed at 2% in Ireland, and then repatriated into the US, they would still be taxed on the difference between the 35% US corporate tax rate and the 2% they've already paid. Now if Apple has to pay Ireland 12.5% instead of the 2% it's paying now, the US would still get the remaining 22.5%.

icebraining 10y ago

Fiscal State Aid has been explicitly illegal since the 90s. Why would case law be needed?

hackuser 10y ago

> You know its bad when the US Treasury department even disagrees with the EU commission The US Treasury may be biased in favor of their constituent, whose CEO recently claimed is the largest taxpayer in the country,[0] and other constituents in similar circumstances. [0] http://www.washingtonpost.com/sf/business/wp/2016/08/13/2016/08/13/tim-cook-the-interview-running-apple-is-sort-of-a-lonely-job/ http://www.washingtonpost.com/sf/business/wp/2016/08/13/2016...

mpweiher 10y ago
Not just that. Once the income has been taxed outside the US, it can no longer be taxed by the US. And so far, the US Treasury considered this income as "not taxed", meaning it would have been taxed at the corporate US tax rate when and if moved to the US. Which is why Apple hasn't moved that money to the US, and has something like $190 billion sitting outside the US. So the treasury is being extremely disingenuous here, they just want to be the ones to tax this income.
- cloudjacker 10y ago
  Which is their prerogative.... You can't be on the side of "pay taxes for the sake of paying taxes because..... society and fairness!" without having an opinion on who and what your expropriated productivity is supporting Nobody at Apple or the Treasury Dept said that pledge for 13 years of their life to support roads in Ireland
  - mpweiher 10y ago
    This is income that was generated in the EU and taxed in the EU, except at ludicrously low rates due to a vehicle the Irish government came up with for Apple: a headquarter of their Irish operation that (for Irish tax purposes) is located nowhere in the world. So, no, it is most definitely not their prerogative, just as it isn't the prerogative of the German or Irish government to tax Apple on their US income.
- nodamage 10y ago
  > Not just that. Once the income has been taxed outside the US, it can no longer be taxed by the US. Just to clarify, money that is taxed outside the US gives you a credit towards your US taxes. So if the money is taxed at 2% in Ireland, and then repatriated into the US, they would still be taxed on the difference between the 35% US corporate tax rate and the 2% they've already paid. Now if Apple has to pay Ireland 12.5% instead of the 2% it's paying now, the US would still get the remaining 22.5%.