Monday, February 5, 2018
Ruth Mason (Virginia) presents Why State Aid Needs Discrimination at BYU today as part of its Tax Policy Colloquium Series hosted by Cliff Fleming and Gladriel Shobe:
In August 2016, the European Union’s (EU) Commission dropped a bombshell: it would require Ireland to collect more than $14.5 billion in back taxes from Apple under anti-subsidy rules that most American tax lawyers had never even heard of—the state-aid rules. Suspicions that certain EU Member States colluded with large multinationals to help them evade other states taxes suggests the need for a supra-national authority that could curb harmful state tax practices.
At the inception of a new and potentially transformative type of tax enforcement, this Article presents economic and political arguments for a conservative approach to state aid that would preserve the requirement that to be state aid, the Member State subsidy must be discriminatory.