Bloomberg Quotes David Rosenbloom on Europe Going After Google and Others for Paying Minimal Taxes
Caplin & Drysdale's H. David Rosenbloom spoke with Bloomberg Business regarding big technology companies like Google who are getting in trouble all across Europe after paying minimal tax on their billions of dollars in earrings in the last few years. For the full article, please go to Bloomberg's website.
Excerpt taken from the article.
Guidelines released late last year by the OECD to combat base erosion and profit shifting (BEPS) have the potential to tax tech companies more effectively, says H. David Rosenbloom, an attorney at Caplin & Drysdale and director of the international tax program at the New York University School of Law. Among others, the OECD plan would restrict deductions for interest paid by a company's subsidiary to a sister unit.
"The chickens are coming home to roost," he says.
The chickens have a long flight. Rosenbloom and others say meaningful change will take years or decades, and no plan survives contact with lawyers and lobbyists. At the Feb. 11 Parliament hearing, Google noted that under the terms of its settlement with the Crown, it isn't subject to Britain's "Google Tax," which is meant to target offshore profits.