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What Tim Cook should do is ask why the EU government decided to apply their 'understanding' of a tax rule a full 25 years after the activity started. It's perf
by sonnyblarney 8y ago
What Tim Cook should do is ask why the EU government decided to apply their 'understanding' of a tax rule a full 25 years after the activity started.
It's perfectly reasonable for the EU to say to Ireland 'you can't do that, it's stretching the rules' - but it's entirely unreasonable for the EU to change their minds willy nilly and submit to populist pressure and de-facto re-interpret the rules of business as they go along - and then apply them 25 years retroactively.
Especially when the very head of the EU, Jean Claude Junker is literally the guy who invented the tax-avoidance schemes for an entire nation - Luxembourg - while he was there.
The episode is rotten and stinks to high heaven.
The EU should focus more on harmonizing and clarifying their tax rules instead of deciding after the fact who they don't like - and more importantly - should be focused on developing competitive players in tech so they don't have to try to get into penalization wars.
Asia is undergoing massive growth, as is S. America, the US is doing really well, while the EU is kind of in a slump.
The loopholes should not have ever existed, but it's the EU's/ Ireland's job to make sure they don't exist, not Apple's.
Also - this is just the tip of the iceberg on this issue.
Finally, the EU wants to call Cook to the table not because it will provide any light on what's going on, rather, they want to try to make a public spectacle of it, i.e. 'Look Europe, we are taking those bad US companies to task' - it's all cynical optics.
Better to get their own house in order, Apple et. al. will follow whatever rules are on the table, just make them fair and clear.
- blub 8y agoApple and the Irish government colluded to work around the EU tax system, to the detriment of Irish and EU citizens. No, the salaries of Apple employees won't "trickle down" and compensate for the missing tax income. Why did it take so many years? Because the former two were probably fighting it tooth and nail. Asia & the US are having massive growth at the expense of the well-being of their own populations. You would do well to remember one can't eat money.
- sonnyblarney 8y ago"Why did it take so many years?" Because there wasn't enough money being missed for the EU to take care of it. The EU was well aware and didn't decide to move until it was enough money to care about. It should have been clipped from day one if it was against the rules.