By Vanessa Houlder in London and Christian Oliver in Brussels
How ironic that the US Treasury is now worried about tax investigations into Apple, Starbucks and Amazon.
Robert Stack, a deputy assistant secretary, said the US was concerned that “any retroactive tax would be borne by US taxpayers in the form of a credit”, adding that “a purely prospective remedy would alleviate these concerns”.
The Commission’s competition arm is expected to issue decisions shortly on cases involving Amazon and Fiat in Luxembourg, Apple in Ireland and Starbucks in the Netherlands. If it rules that governments gave companies favourable treatment, it has the power to force governments to claw back 10 years of unpaid taxes, potentially hitting companies with bills running into billions of euros.
The US also fears that the Brussels investigations will end up diminishing the role of its bilateral tax treaties with EU member states. It does not want the commission to override member states in deciding companies’ tax bills, as it has no treaty with Brussels that would allow it to challenge its conclusions.
Hey Robert Stack, how about a tax credit for each country’s expenditure to implement FATCA? That would keep you off the backs of the rest of the world for your insane 30% sanction at least for a while. Look who’s crying now. No Treaty with Brussels, too bad………..