European Union To Question Apple, McDonald’s, Google And IKEA Over Tax Deals

European Union - Flags

A recent report indicates that European Parliament’s tax committee will question Apple, McDonald’s, Google, and IKEA about their European tax deals on Wednesday. While the committee has no power to order changes, the hearing reflects the political concerns over multinationals avoiding local tax liabilities.

Apple and Google run their European operations from Ireland and EU regulators have been looking into whether the companies have received favorable tax deals in Ireland. These are not the only companies that European regulators are investigating for tax affairs, Starbucks refused to attend the hearing tomorrow as did Fiat Chrysler automobile, both companies are in the middle of court cases relating to taxes in Europe.

The Parliament’s Green party last month accused IKEA of avoided paying some 1 billion euros in taxes from 2009 to 2014 because it channeled royalty income through a Dutch company and possibly through Luxembourg and Liechtenstein. The head of Inter IKEA Group, Soren Hansen, will argue the Swedish furniture retailer’s case as Inter IKEA Group owns the intellectual property rights under which its retailers operate.

All the companies under scrutiny claim that they are operating within existing European tax laws and are paying the amount of tax they owe. Previously, Facebook announced that it would start to pay more tax in the UK, instead of routing its earnings from the UK to another country to pay lower taxes and the company will pay corporation tax in the UK on the majority of its UK earnings.

Source: Reuters

Raja Rajan Avatar

Help Us Grow

If you like this post, please share it with your friends.

You are free to copy and redistribute this article in any medium or format, as long as you keep the links in the article or provide a link back to this page.

Subscribe to Newsletter




Privacy Settings

Privacy & Cookie Overview

Our website uses cookies to provide you with the best user experience possible. These cookies are stored in your browser and perform essential functions such as recognizing you when you return to our website, as well as helping us to understand which sections of the website you find most useful and engaging.

To learn more, you can read our Privacy & Cookie Policy or reach out through our Contact form.

Strictly Necessary Cookies

Strictly Necessary Cookies must always be enabled to ensure the proper functioning of this website and to allow us to provide you with excellent service. These cookies are also essential for saving your cookie preferences.

Google Adsense

We use Google AdSense to keep this site free by displaying relevant ads. AdSense requires essential cookies that cannot be disabled, but you can manage other cookies. We respect your privacy and provide options to control non-essential cookies.

For more details on how Google handles your data, visit Google's Data Usage Policy. Please review our Privacy Policy for more information on how we protect your data.

AddToAny

We use AddToAny for social sharing. It doesnโ€™t store cookies, ensuring a privacy-friendly experience. AddToAny complies with GDPR and CCPA by default.

For more, see their Privacy Policy.

OneSignal

We use OneSignal to send notifications to users who opt in. OneSignal complies with GDPR and is certified under the EU-US and Swiss-US Privacy Shield frameworks.

For more, see their Privacy Policy.

3rd Party Cookies

This website utilizes third-party cookies, which can enhance your experience and support our ongoing efforts to improve our services.

Google Analytics

We use Google Analytics to collect anonymous data, such as visitor numbers and popular pages, to improve user experience and site performance. Keeping this cookie enabled helps us refine the site based on visitor activity.

For more information, see Googleโ€™s Privacy Policy.

Discover more from Prime Inspiration

Subscribe now to keep reading and get access to the full archive.

Continue reading