Skip to Main Content
 

David Rosenbloom Comments on EU Tax Probes Prompting Questions About Risk

November 17, 2016, Tax Management Transfer Pricing Reportâ„¢

European Commission tax investigations like the one that presented Apple Inc. with a $14.5 billion tax bill in August are prompting corporate supervisory boards and Big Four accounting firms to probe for risks of future challenges to other companies.

From the Irish view, Apple's tax arrangement was an appropriate economic reward for activities carried on within Ireland, he said.

“Yes, there were untaxed profits, but my view is that these were U.S. profits to be taxed,” Ryan said.

The commission's cases assessing billions in taxes due “get the headlines,” but a better approach would have been to apply the expectation prospectively, not retroactively, he suggested.

H. David Rosenbloom, an attorney at Caplin & Drysdale, Chartered in Washington who teaches international tax law at New York University, agreed with Ryan that most of Apple's tax exposure in the Irish case was likely to be in the U.S., as the business decisions probably at issue were most likely directed from the company's California headquarters.

Facts Needed for Analysis

But Rosenbloom complained that, with nothing more to evaluate than a press release from the commission in the absence of a written opinion, it's impossible to know the facts of the case. Without the facts, it's impossible to analyze the decision, he said.

The commission is redacting the opinion, which is “fair enough,” but that could take a while, Rosenbloom said.

For the full article, please visit Bloomberg Law’s website (subscription required).

Excerpt taken from the article “EU Tax Probes Prompting Questions About Risk” by John Herzfeld for Tax Management Transfer Pricing Report.

________________________________________________

About Caplin & Drysdale
Having celebrated our 50th Anniversary in 2014, Caplin & Drysdale continues to be a leading provider of legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills -- combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment -- make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:
For more information, please visit us at www.caplindrysdale.com.
Washington, DC Office:
One Thomas Circle NW
Suite 1100
Washington, DC 20005
202.862.5000
New York, NY Office:
600 Lexington Avenue
21st Floor
New York, NY 10022
212.379.6000

___________________________

Disclaimer
This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.
© 2018 Caplin & Drysdale, Chartered
All Rights Reserved.

Related Professionals

Related Practice Area(s)