Donald Scarinci
Firm Managing Partner
201-896-4100 dscarinci@sh-law.comFirm Insights
EU is investigating Tax Breaks for US Multinationals
Author: Donald Scarinci
Date: June 16, 2014
Key Contacts
Back
The U.S. has spent a lot of time talking about its own tax laws in relation to large multinationals that repatriate abroad in order to duck its 35 percent income tax rate, but so far little has been said about these companies’ new host governments.
This seems to be changing now that the European Union has opened an investigation into the tax arrangements had between countries like Ireland and the large multinationals that they attract, according to The New York Times. The inquiry is being led by Joaquin Almunia, the EU’s competition commissioner, and covers Apple’s arrangement in Ireland, Starbucks’ in the Netherlands and Fiat Finance as well as Trade in Luxembourg.
“In the current context of tight public budgets, it is particularly important that large multinationals pay their fair share of taxes,” Mr. Almunia said in a statement. “Under the EU’s state aid rules, national authorities cannot take measures allowing certain companies to pay less tax than they should if the tax rules of the Member State were applied in a fair and non-discriminatory way.”
Ireland has become the tax-haven of choice for multinational tech giants to hang their hats as a result of its low 12.5 percent corporate tax rate and its habit of providing them with further concessions, The New York Times explained. This strategy allows Ireland to attract revenue and jobs from giant, profitable companies that otherwise may have gone elsewhere.
For its part, Ireland maintained that Apple received no special tax deal, which would be illegal under EU law, according to the news source. Further, the country expressed its intention to vigorously defend itself, if necessary in European Court. Apple echoed the statement.
If you have any questions about this post or would like to discuss your company’s tax,trust, and estate matters , please contact me, Frank L. Brunetti at ScarinciHollenbeck.com.
- Practices: Tax, Trusts & Estates
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
EU is investigating Tax Breaks for US Multinationals
Author: Donald Scarinci
The U.S. has spent a lot of time talking about its own tax laws in relation to large multinationals that repatriate abroad in order to duck its 35 percent income tax rate, but so far little has been said about these companies’ new host governments.
This seems to be changing now that the European Union has opened an investigation into the tax arrangements had between countries like Ireland and the large multinationals that they attract, according to The New York Times. The inquiry is being led by Joaquin Almunia, the EU’s competition commissioner, and covers Apple’s arrangement in Ireland, Starbucks’ in the Netherlands and Fiat Finance as well as Trade in Luxembourg.
“In the current context of tight public budgets, it is particularly important that large multinationals pay their fair share of taxes,” Mr. Almunia said in a statement. “Under the EU’s state aid rules, national authorities cannot take measures allowing certain companies to pay less tax than they should if the tax rules of the Member State were applied in a fair and non-discriminatory way.”
Ireland has become the tax-haven of choice for multinational tech giants to hang their hats as a result of its low 12.5 percent corporate tax rate and its habit of providing them with further concessions, The New York Times explained. This strategy allows Ireland to attract revenue and jobs from giant, profitable companies that otherwise may have gone elsewhere.
For its part, Ireland maintained that Apple received no special tax deal, which would be illegal under EU law, according to the news source. Further, the country expressed its intention to vigorously defend itself, if necessary in European Court. Apple echoed the statement.
If you have any questions about this post or would like to discuss your company’s tax,trust, and estate matters , please contact me, Frank L. Brunetti at ScarinciHollenbeck.com.