France, Germany and other partners plan to crack down on loopholes which have allowed U.S. tech giants such as Apple, Alphabet Inc., Amazon, and Facebook to “minimize taxes and grab market shares.”
According to some European countries, they believe some of the United States tech giants are exploiting tax loopholes in their own countries. It seems by the report that the loopholes have allowed the tech giants like Apple and others to “minimize taxes and grab market shares” at the expense of the European based companies.
Last month, France and Germany united at a joint cabinet meeting to discuss this very issue regarding improving the tax issues. France plans to draft and propose what is called “simpler rules” and “real taxation” which is aimed at creating laws for non-European companies. Germany plans to discuss specific proposals after its national election is held on September 24th.
If the new European laws go into effect, Apple and the other large tech companies could possibly face more tax avoidance charges. According to Apple CEO Tim Cook, he feels Apple is already one of the largest taxpayers in the world. He also went on to say “the company follows the law and pays all the taxes that are owed.”
At this point, Apple is in the midst of appealing a verdict in which the European Commission last year ordered Apple to pay $15.3 billion (13 billion euros) plus interest in back taxes, which stemmed from a ruling that Apple was receiving illegal state aid from Ireland.
Come comment on this article: Some European Countries Seek To Improve Better Tax Plans For U.S. Tech Giants