{shortcode-5bc1e15781e7ccb72a9533487fa1d3adf22ba076} Questions over the taxation of multinational corporations are putting strain on the relationship between the United States and the European Union, experts said at a Center for European Studies event Wednesday.
This lecture follows a tax dispute between Apple and the European Union, which ensued last year after the EU required Ireland to go after the billions of euros in taxes that Apple had dodged through Irish subsidiaries. The EU argued that this amounted to illegal state aid, while the United States contended that the EU investigation could hurt Apple’s profits.
According to José Manuel Martínez Sierra, a faculty affiliate at the Center for European Studies, multinational corporations like Apple are posing new questions for entities that seek to regulate them.
“The traditional approach that it was really easy to tackle a frame or an individual person regardless of where they are living or located is not useful anymore, because of course they can have their headquarters in one country but they might have their social headquarters in a another country,” Sierra said.
The future of dialogue between the United States and the EU on tax issues has become more fraught in the wake of new international policies promoted by President Donald Trump’s administration, according to Stephen E. Shay, a senior lecturer at the Law School.
“I think there is a lot of room for dialogue and for improving U.S. tax relations, but I’m not sure that the current administration is particularly interested in investing a lot of time and energy doing it,” Shay said.
Trump’s election coincided with the introduction of new EU tax reform policies, which João Félix Pinto Nogueira, the Adjunct Academic Chairman of IBFD, highlighted in his presentation. These policies take a firmer stance on taxation of multinational corporations like Apple, a step Nogueira said should involve both the EU and the United States.
However, the disconnect between the EU and United States is only widening, according to Sierra.
“That is where have the problem: that the big players, particularly the U.S., are not willing to commit to rules that will be fair enough for everybody,” Sierra said.
As tax policies continue to change with rising international integration, Sierra emphasized, “we need a global solution and not individual ones.”
Read more in University News
Ex-White Nationalist Explains Supremacist OrganizingRecommended Articles
-
LettersDifferent Prices at 'Tribute' Inappropriate To the Editors: I regret that there exists at Harvard an event called a "Tribute
-
IOP Hosts European Union Speaker"The EU tiger is beginning to roar." --Sir Leon Brittan, vice president of the Commission of the European Communities. The
-
A Swap in EU-U.S. Economic PolicyThe European Union (EU), the “sick man” of the contemporary global economy, should in 2006 abandon the outdated orthodoxy that
-
Ex-German FM VisitsFormer German Foreign Minister Joschka M. Fischer offered his views on the future of the United States’ and Europe’s transatlantic
-
Estonian President Addresses Kennedy SchoolPresident of Estonia Toomas H. Ilves discussed the relationships between the EU and NATO, and between Estonia and the Soviet Union yesterday at the Harvard Kennedy School.