Apple, along with several other large corporations, is facing changes to laws that would kill some of the tax shelters they currently rely on thanks to a reform package proposal from the U.K., France, and Germany. The countries plan to show off the proposed changes at a July G20 finance meeting in Moscow, according to Reuters.
Apple and other companies face new U.K., European tax regulations
The proposed tax changes aim to stop large multinational companies from shifting money to countries where they'll pay lower taxes. "This work is the basis of increased international cooperation to make sure our tax rules reflect our international economy," said British finance minister George Osborne.
As part of the plan, the U.K. will manage an Organisation for Economic Cooperation and Development group to looking into transfer pricing while Germany will run a committee on tax-based erosion. France, along with the United States, will focus on ecommerce and jurisdiction issues.
Tax avoidance has already become a hot topic in the U.K. with the government openly talking about companies like Apple, Amazon, Google, and Starbucks using techniques to shelter money from taxation.
The United States launched an investigation into corporations sheltering money by moving outside of the country, too. Apple is one of the companies targeted in the investigation, and while it is cooperating, has denied any wrongdoing.
With the U.S., U.K., and European countries looking into tax sheltering practices, it's likely Apple and other multinational corporations will have to start looking for new ways to cut down on their tax bills -- or more accurately, are probably already working on new plans.
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