The US government came out against this ruling, suggesting that US corporations are disproportionately targeted by the EC tax rulings.
>The commission has initiated investigations into tax rulings that Apple, Starbucks Corp., Amazon.com Inc. and Fiat Chrysler Automobiles NV. received in separate EU nations. U.S. Treasury Secretary Jacob J. Lew has written previously that the investigations appear “to be targeting U.S. companies disproportionately.”
>“There is a possibility that any repayments ordered by the Commission will be considered foreign income taxes that are creditable against U.S. taxes owed by the companies in the United States,” the paper said. “If so, the companies’ U.S. tax liability would be reduced dollar for dollar by these recoveries when their offshore earnings are repatriated or treated as repatriated as part of possible U.S. tax reform.”
That's fine - sounds like an incentive for companies to bring money back to the US.
The reduction in tax liability happens when the earnings are repatriated per this quote. If these companies are storing this cash overseas in a bid to avoid paying taxes on it with no intention of repatriation until a tax holiday then why should we care?
I would very much care if I were Apple and going to be taxed a second time trying to bring my money back to the USA. If that silly rule was eliminated much of all of this would be moot.
The US government came out against this ruling, suggesting that US corporations are disproportionately targeted by the EC tax rulings.
>The commission has initiated investigations into tax rulings that Apple, Starbucks Corp., Amazon.com Inc. and Fiat Chrysler Automobiles NV. received in separate EU nations. U.S. Treasury Secretary Jacob J. Lew has written previously that the investigations appear “to be targeting U.S. companies disproportionately.”
>“There is a possibility that any repayments ordered by the Commission will be considered foreign income taxes that are creditable against U.S. taxes owed by the companies in the United States,” the paper said. “If so, the companies’ U.S. tax liability would be reduced dollar for dollar by these recoveries when their offshore earnings are repatriated or treated as repatriated as part of possible U.S. tax reform.”
http://www.bloomberg.com/news/articles/2016-08-24/u-s-treasu...