WASHINGTON – The Information Technology Industry Council (ITI), the global voice of the tech sector, released the following statement today by President and CEO Dean Garfield regarding today’s reports that the European Commission will require Ireland to retroactively tax Apple over an arrangement reached between the two parties:
“The Commission’s decision calls into question whether following the laws in an EU Member State is a guarantee that you are playing by the rules in Europe,” Garfield said. “We are deeply concerned by the Commission’s departure from established channels of multilateral cooperation on tax policy in favor of a unilateral approach that, by imposing unforeseeable and retroactive penalties, risks chilling transatlantic commerce and investment and growth in the EU at the expense of U.S. taxpayers. It is imperative for policymakers on both sides of the Atlantic to strive for multilateral solutions to the vexing questions raised by cross border taxation. Businesses operating globally need clear rules to ensure certainty, promote innovation, and stimulate economic growth. We hope members of the G20 discuss this important issue next week.”
Last week, ITI agreed with the U.S. Department of Treasury’s analysis that the Commission’s state aid cases represent a threat to the transatlantic business environment by creating a new, harmful precedent that represents a departure from EU case law, prior Commission decisions and international tax norms. ITI instead urged the Commission to address the challenges of cross border taxation through longstanding, expert channels such as the Organisation for Economic Co-operation and Development (OECD).