Written by Cécile Remeur,
In late August 2016, the adoption by the European Commission of a state aid decision on Ireland’s tax rulings in favour of tax-resident companies related to Apple raised substantial debate, with regard to the multinational enterprise (MNE) concerned and the amount to be recovered.
Taxation and state aid relating to MNEs
Taxation of MNE in a global environment
© momius / Fotolia
With regard to MNEs’ taxes, corporate aggressive tax planning and tax avoidance have been in the spotlight. ‘Tax avoidance’ generally remains within the limits of the law, unless deemed illegal by the competent authorities or, ultimately, by the courts, in particular as an abuse of law; tax avoidance can be described as a risk-taking decision. In contrast, tax evasion and fraud are both illegal.
In short, corporate aggressive tax avoidance uses loopholes, asymmetries and mismatches of tax rules that allow MNEs to stay…
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