Corporate tax is back on the agenda today at the European Parliament in Brussels as MEPs get the opportunity to quiz some of the giants of the corporate world about their tax practices.
Apple, Google, Ikea and McDonalds have agreed to appear before the Parliament’s so-called Taxe 2 special committee on tax. The committee is a follow-up to the special committee on tax which was established in the wake of the Luxembourg Leaks scandal. Headed by veteran French MEP Alain Lamassoure, it visited Dublin last May as part of its inquiry into corporate tax practices.
The Taxe 2 committee has been given a six-month mandate and is due to present a report by the summer. Like its predecessor, there are question marks about its ultimate power and scope. Nonetheless, it has succeeded in getting some of the most secretive companies in the world to open up a little about their tax practices.
All four of the companies appearing today have faced increasing criticism about their tax practices in recent months. (Fiat and Starbucks declined an invitation to send representatives.)
Google has been under fire, particularly in Britain, following its settlement with the UK taxman earlier this year. McDonalds has found itself in conflict with competition commissioner Margrethe Vestager following the announcement in December of an antitrust probe into taxes on royalties paid by franchisees in Europe and Russia. The privately held furniture giant Ikea was the subject of a recent investigation commissioned by Greens in the European Parliament.
Of most interest to Ireland will, of course, be the appearance by Apple, who will be represented by Cathy Kearney, vice president for operations in Ireland.
With Apple facing the possibility of a hefty bill for unpaid taxes in the event of a negative finding by the European Commission’s competition body in the ongoing probe, shareholders and tax justice campaigners will be looking for clues as to the investigation’s progress.
With the outcome of the investigation unlikely before Easter, today’s appearance could shed some light on the eventual outcome of a process that could have major implications for Ireland.
