4 ms·

"... that push has prompted complaints from American tech giants, which argue that they are being unfairly singled out by Brussels. European officials strongly

by sqdbps 9y ago

"... that push has prompted complaints from American tech giants, which argue that they are being unfairly singled out by Brussels. European officials strongly deny those claims..." After so many targeted requirements, restrictions, investigations, fines, and taxes no one's really buying that denial. It's tariff by other name, which lends credence to Trump's rhetoric about how we haven't been treated fairly by our so called allies. EU governance and enforcement lends itself to be hijacked by the bloc's most powerful members (france and germany, in this particular case the french) and use them as a cudgel against perceived business threats.

dozzie 9y ago
Though it's not like you treat your so called allies fairly, either.
- sqdbps 9y ago
  We have far lower tariffs and fewer business barriers than any other market.
JanSt 9y ago
No it's not. Amazon pays less taxes on books sold than any bricks-and-mortar store in countries like Germany. They abuse the broken tax system and force smaller players that can't afford those structures (or get an illegal special Ireland tax treatment like Apple) out of business because they can't compete against massive scale combined with lower taxes. The EU now tries to fix the system because those companies keep evading all other measures. The EU population and local businesses do not accept that damaging behavior anymore. You want to make profit in our countries? Don't abuse the system or it will be fixed to be fair again.
- sqdbps 9y ago
  If you are going to benefit from the EU's consolidated market you can't complain about the benefits companies are extracting from that same arrangement. Not to mention that taxing specific companies that happen to come from the same country while the keeping the tax rules unchanged for the rest of the economy isn't fair or free trade and would justifiably require retaliation.
  - JanSt 9y ago
    Ireland agreed to a special Apple tax treatment so that Apple pays practically no taxes. Special deals for single companies are illegal under EU law. You want access to the EU market? Play by the rules. The tax law is also not applicable only to US companies but to all companies. This is like saying all law breaking mafia members that corrupted a member state are coming from the same country and putting them behind bars is not fair because the EU is a consolidated market and if you want to profit from it you have to agree that the mafia extracts value from the arrangement and leaving the rules unchanged for the rest of the non-mafia economy is not fair or free trade.
    - derriz 9y ago
      The commisioner has argued that Ireland agreed to a special deal for Apple. Ireland and Apple strongly deny that there was any favourable tax deal offered. The ECJ will decide the case and unless the EU wants to undermine the entire system of transfer pricing which is the basis for international trade, they will side with Ireland and Apple.
      - JanSt 9y ago
        The EC ruled the tax deal illegal and forced Ireland to collect $13bn which Ireland denied to do. The EC thus put Ireland to the ECJ and started implementing alternative tax rules, with the 3% revenue tax being the result. Paying 0.005% taxes by evading the system? The system will be changed. "The ECJ will decide the case and unless the EU wants to undermine the entire system of transfer pricing which is the basis for international trade, they will side with Ireland and Apple." Transfer of profit to the lowest tax destination is not the basis for international trade. Evading taxes will result in tax laws adapting.
        derriz 9y ago
        This is simply factually incorrect. Ireland and Apple lodged the appeal to the ECJ against the ruling in November 2016. Ireland was forced to collect the 13B pending the appeal in December 2017. The US is not the lowest tax destination - in fact it has a relatively high corporate tax rate. Apple is making their international profits subject to US corporate tax which is why the US is on the side of Ireland and Apple in the appeal.

by sqdbps 9y ago

dozzie 9y ago

Though it's not like you treat your so called allies fairly, either.

sqdbps 9y ago
We have far lower tariffs and fewer business barriers than any other market.

JanSt 9y ago

No it's not. Amazon pays less taxes on books sold than any bricks-and-mortar store in countries like Germany. They abuse the broken tax system and force smaller players that can't afford those structures (or get an illegal special Ireland tax treatment like Apple) out of business because they can't compete against massive scale combined with lower taxes. The EU now tries to fix the system because those companies keep evading all other measures. The EU population and local businesses do not accept that damaging behavior anymore. You want to make profit in our countries? Don't abuse the system or it will be fixed to be fair again.

sqdbps 9y ago
If you are going to benefit from the EU's consolidated market you can't complain about the benefits companies are extracting from that same arrangement. Not to mention that taxing specific companies that happen to come from the same country while the keeping the tax rules unchanged for the rest of the economy isn't fair or free trade and would justifiably require retaliation.
- JanSt 9y ago
  Ireland agreed to a special Apple tax treatment so that Apple pays practically no taxes. Special deals for single companies are illegal under EU law. You want access to the EU market? Play by the rules. The tax law is also not applicable only to US companies but to all companies. This is like saying all law breaking mafia members that corrupted a member state are coming from the same country and putting them behind bars is not fair because the EU is a consolidated market and if you want to profit from it you have to agree that the mafia extracts value from the arrangement and leaving the rules unchanged for the rest of the non-mafia economy is not fair or free trade.
  - derriz 9y ago
    The commisioner has argued that Ireland agreed to a special deal for Apple. Ireland and Apple strongly deny that there was any favourable tax deal offered. The ECJ will decide the case and unless the EU wants to undermine the entire system of transfer pricing which is the basis for international trade, they will side with Ireland and Apple.
    - JanSt 9y ago
      The EC ruled the tax deal illegal and forced Ireland to collect $13bn which Ireland denied to do. The EC thus put Ireland to the ECJ and started implementing alternative tax rules, with the 3% revenue tax being the result. Paying 0.005% taxes by evading the system? The system will be changed. "The ECJ will decide the case and unless the EU wants to undermine the entire system of transfer pricing which is the basis for international trade, they will side with Ireland and Apple." Transfer of profit to the lowest tax destination is not the basis for international trade. Evading taxes will result in tax laws adapting.
      - derriz 9y ago
        This is simply factually incorrect. Ireland and Apple lodged the appeal to the ECJ against the ruling in November 2016. Ireland was forced to collect the 13B pending the appeal in December 2017. The US is not the lowest tax destination - in fact it has a relatively high corporate tax rate. Apple is making their international profits subject to US corporate tax which is why the US is on the side of Ireland and Apple in the appeal.