Tax Avoidance – US and them
The US Treasury has recently issued a paper on the European Commission’s concern on tax avoidance. It is accepted that the international community, the European Union and the US along with the rest of the world need to address the issue multilaterally. However, the Treasury has some concerns with the recent State aid investigations, namely:-
The approach is new and departs from prior case law and decisions;
It is not reasonable to seek retroactive recovery of tax;
The current approach is inconsistent with international norms and undermines the international tax system.
In reality we should always have expected a pushback in that practically speaking a company has a duty to pay tax on its profits. Any tax planning will normally move profits from one jurisdiction to another and if companies are paying tax on a worldwide basis then any underpayment in one country that is subsequently recovered will almost certainly lead to an adjustment in another. It was not to be expected that the US would stand by and watch its tax take a fall as a result of EU actions.
Date: 5th October, 2016
Articles from this Author
20th July, 2017
Uncertain times for winding up transactions
3rd July, 2017
9th June, 2017
27th April, 2017
Government places Making Tax Digital legislation on hold
Contact Business Service Partners
Choose from the drop down menu below to select a Partner to contact.
“Good luck to everyone who has also made it as a finalist, I look forward to awards evening later on in the year”-L… twitter.com/i/web/status/8…
For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole