August 30, 2016 12:33 PM | Permalink |
Following is a statement by Matt Gardner of the Institute on Taxation and Economic Policy (the research umbrella for Citizens for Tax Justice) regarding the European Commission’s ruling today that the Apple Corporation must pay as much as €13 billion ($14.5 billion) in back taxes due to an illegal tax break granted by the Irish government.
“The European Commission action is a chastening reminder to U.S. policymakers that our tax system has enabled much of the tax-dodging antics in which Apple and hundreds of other corporations have engaged.
“Instead of backing big business and questioning the legitimacy of the commission’s ruling, as the U.S. Treasury Department has, the nation’s regulators and lawmakers should take a page from the European Commission’s book and crack down on rampant corporate tax avoidance. Prompt action by U.S. policymakers could yet ensure that Apple pays U.S. taxes on all its U.S. profits—even those it has misleadingly claimed it has earned in Ireland.”
Mr. Gardner takes a deeper look at the EU Commission’s ruling in the blog post:
EU Ruling on Apple’s Egregious Tax Avoidance Is Welcome News, But $14.5 Billion Is Only a Fraction of the Story.