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Global firm execs quizzed over tax avoidance

Executives who represent a number of the largest firms in the world defended their clients’ Brussels tax positions as authorities continue to chase down any company they believe may be avoiding corporation tax.

At a recent European Parliament hearing, executives from Idea, McDonalds, Apple, and Google discussed their own tax practices with MEPs.

Operations vice president for Apple, Cathy Kearney, defended the tech giant’s tax practices. Kearney, based in Ireland, said that all due tax in Ireland has been paid and that she expects the investigation to find them innocent of any and all avoidance.

She added:

“We pay most of our taxes in the US. We pay tax in the local subsidiaries in full compliance with the tax law in those subsidiaries. We pay deferred tax income, and our income that is not taxed in Europe is subject to US tax.”

Google is also facing questions over the method of their European tax payments, particularly after it revealed a £130m HMRC deal related to its failure to make corporation tax payments.

Margrethe Vestager, the competition commissioner for the EU, paved the way in January for an investigation into the search engine’s tax dealings in the event of someone making a complaint.

Small to medium businesses should take note of recent investigations as all businesses could potentially be subjected to such investigations in the near future. That’s why it is important to use the services of an accountant, so that Wirral SMEs can ensure that the books are 100% correct and that all tax payments have been made.

Posted by Peter
March 23, 2016
Tax

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