BRUSSELS (AP) – The European Union’s executive branch rejected Thursday the U.S. government’s complaint that its probes into sweetheart tax deals between EU governments and big companies are hitting U.S. firms hardest.
“EU law applies indiscriminately to all companies operating in Europe – there is no bias against U.S. companies,” Commission spokeswoman Lucia Caudet said.
The European Commission, which polices EU laws, is cracking down on the practice in which EU governments offer low corporate tax rates to multinationals. In exchange, the companies set up their EU headquarters in those countries. The practice means multinationals often pay very low effective tax rates.
The Commission has opened tax probes into Apple in Ireland, Starbucks in the Netherlands and Amazon in Luxembourg. Caudet noted one of its first tax rulings last year concerned European company Fiat. This year the Commission rejected a Belgian tax scheme involving 35 mostly European companies.
The U.S. Treasury Department says the EU investigations could cost American taxpayers if companies are forced to pay higher taxes in Europe because businesses get U.S. tax credits for foreign tax payments.