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Farm Business
Politics, Covid19 and Brexit
The Apple tax case and the direction of the EU
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<blockquote data-quote="Goweresque" data-source="post: 2899206" data-attributes="member: 818"><p>If this was about state aid, where have the EU Commission been for the last 30 years when countries like France,Italy, Spain, Belgium (to name but a few) have been shovelling taxpayers cash at various individual companies and specific sectors dominated by home producers? All the deals that national airlines around Europe repeatedly got from their governments to 'restructure' and 'rationalise'? No-where to be seen thats where.</p><p></p><p>The EU have chosen this case very carefully - it involves a small EU country, who don't have the political clout of a larger one, it involves a non-EU company, so not going to get much sympathy. And on it is riding a massive point of law principle - can the EU over-ride individual countries democratically elected parliaments when it comes to tax, on the basis of state aid rules? If they get their ruling you can bet your bottom dollar they'll be using it pretty frequently in other cases.</p><p></p><p>The EU have form on this - they took Ireland to the ECJ many years ago when the Irish proposed a 10% corporation tax rate for financial companies (in order to try and make Dublin a financial centre). The ECJ said they couldn't make it specific to financial companies only. So the Irish brought in the 12.5% rate for all companies at that point, to thwart the EU Commission. And they've been gunning for the Irish 12.5% rate ever since, and if they get this ruling, the next thing will be to say that the 12.5% rate is unfair state aid to all companies in Ireland, and should be raised to an EU mandated minimum level. And having got the legal principle established that a low tax rate for one company is unfair state aid, its less of a jump to make the same ruling about low rates for all companies.</p><p></p><p>Salami slicing - its how the EU gets what it wants.</p></blockquote><p></p>
[QUOTE="Goweresque, post: 2899206, member: 818"] If this was about state aid, where have the EU Commission been for the last 30 years when countries like France,Italy, Spain, Belgium (to name but a few) have been shovelling taxpayers cash at various individual companies and specific sectors dominated by home producers? All the deals that national airlines around Europe repeatedly got from their governments to 'restructure' and 'rationalise'? No-where to be seen thats where. The EU have chosen this case very carefully - it involves a small EU country, who don't have the political clout of a larger one, it involves a non-EU company, so not going to get much sympathy. And on it is riding a massive point of law principle - can the EU over-ride individual countries democratically elected parliaments when it comes to tax, on the basis of state aid rules? If they get their ruling you can bet your bottom dollar they'll be using it pretty frequently in other cases. The EU have form on this - they took Ireland to the ECJ many years ago when the Irish proposed a 10% corporation tax rate for financial companies (in order to try and make Dublin a financial centre). The ECJ said they couldn't make it specific to financial companies only. So the Irish brought in the 12.5% rate for all companies at that point, to thwart the EU Commission. And they've been gunning for the Irish 12.5% rate ever since, and if they get this ruling, the next thing will be to say that the 12.5% rate is unfair state aid to all companies in Ireland, and should be raised to an EU mandated minimum level. And having got the legal principle established that a low tax rate for one company is unfair state aid, its less of a jump to make the same ruling about low rates for all companies. Salami slicing - its how the EU gets what it wants. [/QUOTE]
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The Apple tax case and the direction of the EU
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