Many technology companies are under scrutiny in Europe for the way they conduct their European tax affairs. Tomorrow, Apple, Google, MacDonald’s and IKEA will be questioned about their tax deals with various European countries by European regulators.
Apple and Google run their European operations from Ireland and EU regulators have been looking into whether the companies have received favorable tax deals in Ireland.
These are not the only companies that European regulators are investigating for tax affairs, Starbucks refused to attend the hearing tomorrow as did Fiat Chrysler automobile, both companies are in the middle of court cases relating to taxes in Europe.
Facebook recently announced that it would start to pay more tax in the UK, instead of routing its earnings from the UK to another country to pay lower taxes, it will pay corporation tax in the UK on the majority of its UK earnings.
To be fair to the technology companies, the majority of them are operating within existing European tax laws and they have a responsibility to their shareholders to get the best return for them, this obviously includes paying the amount of tax they owe.
The various European countries need to change their tax laws to stop the companies moving their earnings from one country to another just to pay a lower tax rate.