Battle lines are being drawn in the clash between Apple and the European Union after the European Commission ordered Ireland to collect up to $14.5 billion in taxes from Apple.
Reuters is reporting that the Obama administration responded angrily to the EU order, while some lawmakers renewed calls for international tax reform.
“The U.S. Treasury Department, which enforces federal tax policy, warned that U.S.-EU economic relations could be affected by the stunning decision by the European Commission,” Reuters reports. “Critics in Congress denounced the move as a predatory money grab that would encroach on U.S. government jurisdiction and ultimately add to the federal deficit.”
U.S. Rep. Kevin Brady, R-Texas, chairman of the House Ways and Means Committee, also responded angrily, saying in a statement: “The European Commission’s decision is a predatory and naked tax grab.”
“The Treasury had previously warned that making U.S. companies pay back taxes in Europe could hit the United States’ own coffers because tax payments overseas can be deducted against U.S. taxes,” Reuters notes. “But it was not clear what Washington could do to counter the regulatory order, which ruled that Apple had received illegal state aid under its tax agreement with Ireland and must pay back the taxes plus interest.”