Europe Investigates Tax Breaks for US Giants

Europe Investigates Tax Breaks for US Giants

Large multinationals, many of which are US companies, receive some favourable tax advantages in the European Union, but an inquiry is now looking into these arrangements to ensure that they are applied fairly and correctly. Many US companies, including Apple and Starbucks, use their European operations to reduce global tax bills; Ireland is a popular choice due to tax breaks and light regulation. It is home to Apple and the Irish government say they will defend their position, which is that they don’t believe they have given the tech giant any unfair ‘state aid’ to operate in the country. Under EU rules, if member states are deemed to have given unfair state aid to businesses they may be required to recover those subsidies from the recipient companies. Read the full story.