Thursday, October 31, 2019
Eric M. Zolt (UCLA) presented Corporate Responsibility to Pay Taxes at Toronto yesterday as part of its James Hausman Tax Law and Policy Workshop Series:
We are trying something new. Instead of the traditional paper-presentation-and-Q&A format, we are using a case study to raise issues related to the obligations of corporations to pay taxes in countries where they operate.
The primary reading for the session is a Harvard Business School case study prepared by three INSEAD professors: Did Apple Pay Too Little Tax? Appealing the EU Ruling on Illegal State Aid. ...
In preparing for class discussion on the case study, we have asked the students to respond to the following questions:
- Should the European Union have the power to challenge decisions made by the Irish government concerning their domestic tax policy -- specifically on how to determine Apple’s tax liability?
- Is Apple doing anything wrong in structuring its operations to minimize its US and foreign tax liability? Does Apple have a corporate responsibility to pay taxes in the countries in which it operates?
- The OECD/G-20 Base Erosion and Profit Shifting Projects (BEPS) seeks to align profits (and tax liability) where “value” is created to prevent corporations from shifting profits to low-tax jurisdictions. Based on this “value” proposition, where should Apple pay taxes? How does the October 9, 2019 OECD public consultation document on a “unified approach” to profit allocation influence your position? It is available here.