Tax Conflict Splits U.S. and EU Over Apple, McDonald's Probes
- Treasury's Lew says state-aid cases unfairly target U.S. firms
- Central EU tax oversight poses growth risks due to uncertainty
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Conflict over trans-Atlantic tax practices escalated this week as U.S. Treasury Secretary Jacob Lew complained to European Commission President Jean-Claude Juncker that American firms are unfair targets of state-aid investigations.
Lew Juncker Thursday saying the tax probes are hurting international efforts to crack down on corporate tax evasion. He said European Union inquiries are creating “disturbing international tax precedents” and seem to target U.S.-based firms without sufficient justification. The letter raises the U.S. concerns to a higher level, building on previous comments from a senior Treasury tax official.