Saturday 10 December 2016

OECD: Firm profits belong in US

Published 27/09/2016 | 02:30

Director of the Centre for Tax Policy and Administration (OECD) Pascal Saint-Amans. (Photo by Dominika Lis/G20 Australia via Getty Images)
Director of the Centre for Tax Policy and Administration (OECD) Pascal Saint-Amans. (Photo by Dominika Lis/G20 Australia via Getty Images)

The international profits of US multinationals belong in the United States, a senior tax official at an influential global economic think tank has said.

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Although declining to comment specifically on the Apple case, Pascal Saint-Amans, the director of tax policy at the Organisation for Economic Cooperation and Development (OECD), suggested the profits of large American technology and pharmaceutical firms should be taxed in the US.

The comments will give a boost to the Government's argument that the European Commission's decision concerning Apple is flawed.

"If we go beyond the pure state aid with its own aspect … you have the question of where does the profits belong to? Who does it belong to. I think there is no ambiguity here, that the bulk of it belongs to the United States," Mr Saint-Amans said. "When you look at the broad picture, the tech companies, the pharmaceutical companies, yes the profit belongs to the US, the problem is that the US is not taxing it today, because of the lack of tax policy reform."

Mr Saint-Amans said there needs to be tax reform in the United States to ensure profits are taxed, where the substance of the organisation lies. He also said Ireland was not a tax haven.

Irish Independent

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