When the world gets closer.

We help you see farther.

Sign up to our expressly international daily newsletter.

Economy

Juncker's Irony, EU Leads Fight Against Tax Evasion As Apple Gets Hit

The EU Commission is taking a tough stance on tax evasion, as shown with the 13 billion euro bill leveled at Apple.

President of the European Commission Jean-Claude Juncker
President of the European Commission Jean-Claude Juncker
Renaud Honoré

-Analysis-

BRUSSELS — Jean-Claude Juncker had only spent four days as president of the European Commission in November 2014 when an enormous scandal erupted. "Luxleaks," revealed in several top European newspapers, detailed how Luxembourg had favored large-scale tax optimization while Juncker had been prime minister of the Grand Duchy for 18 years.

It is a supreme irony that two years later, the Juncker-led Commission is poised to become a leader in the fight against tax evasion, with this week's case against Apple as a centerpiece case. The Luxembourgian politician may well be rubbing his hands in glee.

The backlash against Apple for its alleged illegal tax arrangements with the Irish government — the EU says it owes the country 13 billion euros in back taxes — was not unprecedented. Before the American tech giant, U.S. coffee retailer Starbucks and Italian automaker Fiat paid unusually low taxes in exchange for basing their operations in the EU. Amazon and McDonald's could be the next big ones on the list. Those earlier cases had been initiated by former EU Commissioner Jose Manuel Barroso and were expedited under Juncker.

Two years ago, when the European Union executive branch realized how difficult it was to fight tax optimization using existing legislation, it chose to tackle the issue with a unique tool: The so-called "state aid rules" that bar governments from giving special status to companies.

Transparency legislation

In the last few months, the various scandals surrounding tax havens have led to further legislative changes: New laws on transparency have been incorporated into fiscal policy, as has the OECD's recommendations on combating tax evasion, which are now well advanced. Even though it had to scale back its initial ambitions, the Commission managed to maintain a tough stance and has achieved unprecedented progress after being largely hamstrung under the previous tax regime.

Although so much has changed in a short period of time, the Commission is likely to face increasing opposition from other individual EU countries in the wake of the Apple case. By ruling against Ireland's tax arrangement with Apple, it has intervened in national tax policy, something EU states are likely to sorely resent.

You've reached your limit of free articles.

To read the full story, start your free trial today.

Get unlimited access. Cancel anytime.

Exclusive coverage from the world's top sources, in English for the first time.

Insights from the widest range of perspectives, languages and countries.

Migrant Lives

What's Driving More Venezuelans To Migrate To The U.S.

With dimmed hopes of a transition from the economic crisis and repressive regime of Nicolas Maduro, many Venezuelans increasingly see the United States, rather than Latin America, as the place to rebuild a life..

Photo of a family of Migrants from Venezuela crossing the Rio Grande between Mexico and the U.S. to surrender to the border patrol with the intention of requesting humanitarian asylum​

Migrants from Venezuela crossed the Rio Grande between Mexico and the U.S. to surrender to the border patrol with the intention of requesting humanitarian asylum.

Julio Borges

-Analysis-

Migration has too many elements to count. Beyond the matter of leaving your homeland, the process creates a gaping emptiness inside the migrant — and outside, in their lives. If forced upon someone, it can cause psychological and anthropological harm, as it involves the destruction of roots. That's in fact the case of millions of Venezuelans who have left their country without plans for the future or pleasurable intentions.

Their experience is comparable to paddling desperately in shark-infested waters. As many Mexicans will concur, it is one thing to take a plane, and another to pay a coyote to smuggle you to some place 'safe.'

Venezuela's mass emigration of recent years has evolved in time. Initially, it was the middle and upper classes and especially their youth, migrating to escape the socialist regime's socio-political and economic policies. Evidently, they sought countries with better work, study and business opportunities like the United States, Panama or Spain. The process intensified after 2017 when the regime's erosion of democratic structures and unrelenting economic vandalism were harming all Venezuelans.

Keep reading...Show less

You've reached your limit of free articles.

To read the full story, start your free trial today.

Get unlimited access. Cancel anytime.

Exclusive coverage from the world's top sources, in English for the first time.

Insights from the widest range of perspectives, languages and countries.

The latest