Apple tax

Letter from Tim Cook / Apple:

The Commission’s move is unprecedented and it has serious, wide-reaching implications. It is effectively proposing to replace Irish tax laws with a view of what the Commission thinks the law should have been. This would strike a devastating blow to the sovereignty of EU member states over their own tax matters, and to the principle of certainty of law in Europe.

As much as I would like tax laws to properly tax companies (something The Dutch can do better too!), right now tax laws aren’t doing that. And if you make Apple pay for that, you have to make thousands of other companies do the same really. More importantly, this goes to show yet again that the EU isn’t perfect. Either we go all in and let the EU dictate all economic decisions for Europe as a whole (which, mind you, would be very difficult considering all the different countries with different levels of wealth…), or we don’t (which is probably what many people would prefer).

I think it’s weird to retroactively change the tax rules, if that’s what’s happening now. We could make different rules for the future. But is the EU the right body to do that? Do we agree with that?

The thing is, even if we in Europe change the rules, the companies would just move to countries where the rules are better. Companies will always try to find ways to maximize earnings and avoid giving too much of them away. You can’t take that out of companies. What we could try is rebuild our tax system so companies can’t avoid them or pay them in other countries where you can pay less.

Tax reform doesn’t seem to be a particular hot topic yet. Lower taxes, yes. So to be honest, I see world peace happening sooner.

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