September 20,2016

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Hatch Expresses Ongoing Concerns with EC State Aid Rulings

Bipartisan Finance Committee Meeting with European Commissioner Vestager Reaffirms Opposition
WASHINGTON – Today, members of the Senate Finance Committee met with European Commissioner for Competition Margrethe Vestager to discuss the European Commission’s (EC) recent ruling regarding Apple and its tax arrangements in Ireland. Senate Finance Committee Chairman Orrin Hatch (R-Utah), who met with Commissioner Vestager prior to the bipartisan Committee meeting, issued the following statement:
“Rather than working with countries to strengthen the international tax framework and improve the rule of law, the European Commission, in its recent state aid ruling, opted to run roughshod over an American firm by retroactively overriding a tax opinion between a sovereign country and a company. Though our meetings were cordial, the Commissioner failed to build an effective case for this highly politicized ruling rooted in an erroneous interpretation of law, underscoring the need for additional action in international courts.
“While the Committee will continue to carefully scrutinize this case as it moves forward, we must do our part to address the anti-competitive nature of the U.S. tax code and the impact it has had on our domestic job-creators both here and abroad. Lowering the corporate tax burden and shifting to a territorial regime with base erosion protections will help shift our economic landscape and produce fertile ground for more businesses to invest here at home. It’s an achievable, bipartisan goal that holds great promise, should we get a willing partner in the White House.”
Hatch, joined by a bipartisan group of Senate Finance Committee members, has consistently expressed concern over the EC state aid investigations saying it could lead to retroactive taxation on multinational enterprises and have an adverse impact on U.S.-based companies. The Committee convened a hearing on the topic last year.