Benjamin Franklin is thought to have said ‘nothing in this world is certain, except death and taxes’. But recent state aid investigations by the European Commission have introduced uncertainty on corporate taxation.
Fighting tax avoidance is a key priority for the EU. Yet, the European Commission’s approach has faced criticism for going after big companies from across the ocean. Apple was slapped with a $14.5 billion tax bill. Other big players such as Starbucks and Amazon are in stage of litigation. The European Commission wants all big business operators to pay their ‘fair share’. Therefore, additional cases are set to arise.
Mitigating the consequences of the EU ‘tax crusade’ by achieving more balanced solution should be a key priority for all big multinational companies operating in Europe.