Re:Macron says France and U.S. reached digital tax deal
by JanSt on Tuesday August 27, 2019 @05:05AM
(#20807564)
> To me, it seems perfectly reasonable that most of it is taxed in the US
It doesn't matter what you consider reasonable. If you want to access the European market, you better pay the taxes that are demanded.
> And indeed this is how international corporation tax works by decades of rules on transfer pricing and how corporations are allowed to assign expenses and value along international supply chains.
We are talking about tax loop-holes. This is about closing such a loop-hole.
In Apple's case it seems even worse, because Ireland gave them a special tax deal, lowering their tax rate below Irelands normal rate, which is illegal under EU law.
> And even if you did that, it would not change Apple's tax liability
It doesn't matter what you consider reasonable. If you want to access the European market, you better pay the taxes that are demanded.
> And indeed this is how international corporation tax works by decades of rules on transfer pricing and how corporations are allowed to assign expenses and value along international supply chains.
We are talking about tax loop-holes. This is about closing such a loop-hole.
In Apple's case it seems even worse, because Ireland gave them a special tax deal, lowering their tax rate below Irelands normal rate, which is illegal under EU law.
> And even if you did that, it would not change Apple's tax liability
So, why doesn't Apple pay those German taxes?