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Business

D.C. warns EU against Apple tax ruling

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Opening sequence

Business

D.C. warns EU against Apple tax ruling

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COMING UP:D.C. warns EU against Apple tax ruling

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Transcript

00:00:02
>> EU, watch out, your economic relations with the US could face a strain from the Apple tax ruling. That's the clear message Washington sent swiftly on Tuesday, after the European Commission ordered the Silicone Valley Tech giant to pay up 13 billion euros, or $14 and a half billion in taxes to Ireland.
00:00:23
The US Treasury Department which enforces the Federal Tax Policy, even calling the move a predatory money grab, Reuters Jason Lang is in D.C.>> Well, the U.S. Treasury has a problem with this, because it means that the U.S could end up collecting less taxes from Apple. Current tax law is that when Apple brings money back to the US, it can deduct any income taxes it pays to foreign governments.
00:00:48
So, paying this extra tax to Ireland would mean less money for US coffers in the future.>> A treasury representative also saying the ruling could undermine foreign investment in Europe and Senate Finance Committee Chairman, Orrin Hatch, said, lawmakers would examine the EU decision and warn it was inconsistent with International standards.
00:01:09
>> It's really unclear if the US can do anything about this. They could have leverage if they wanted it but are they really going to start a major spat over this, with such a close ally? That's yet to be seen.>> But for companies like Apple, analysts say the latest e-ruling as a compelling new dimension to the tax reform debates surrounding the treatment of more than 2.1 trillion in US corporate profits held offshore to avoid US taxes.