The European Union Set to Sue Ireland for Inaction

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European competition regulators are not yet done with Silicon Valley companies. The body on Wednesday pushed ahead with a regulation that aims at eliminating tax avoidance by the American companies. As a result, the body announced that it would take the Republic of Ireland to court for failing to acquire the taxes that Apple owed it. At the same time, the European body ordered Luxembourg to collect the taxes that had not been remitted to the tiny European nation by Amazon. This is part of the ongoing changes that govern the way taxes are collected in the European Union that has 28 members at the moment. In the past few months, the EU has declared war on American companies on the basis of taxes levied on these companies. There are more plans to find these companies at fault as there are speculations that the body wants to open investigations relating to the way that these companies handle customer data. At the same time, the EU is looking at the penalties that are levied in relations to antitrust violations. According to critics, they speculate that the European Union is on a witch hunt for American companies, an accusation that these officials deny.

According to the people who are advocating for these tax changes concerning the big Silicon Valley companies, they argue that these big companies are running away from their tax obligations. Instead, they have left these tasks to individuals and small companies. This comes after the European Union’s competition commissioner Margrethe Vestager asked Luxembourg to collect the taxes owed by Amazon. These taxes equaled $293 million or 250 million euros and was based on an agreement that had the signatures of the company, that of the country and the European Union. This is similar to an order that was issued by the commission to Ireland when they demanded the country to collect $15.2 billion form Apple. However, Ireland is yet to implement this order for fear of retribution by other international companies. The Irish government was supposed to implement this decision in January and has since failed to act on it. While addressing the commission, Ms. Vestager said that Ireland had failed the body by failing to collect any money. She urged the nation to be swift in demanding money from the American company. She then threatened the government of Ireland with a lengthy lawsuit for inaction. The lawsuit is expected to last in court for years.

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