EU vs Apple - Implications - Implikazzjonijiet

 

Many of you will have heard of the decision by the Commission of the European Union to intervene in the financial system of a member of the EU, Ireland, and order the massive company Apple, which has an important office in that country, to pay tax in arrears of €13 to Ireland.

 

The EU is doing this not because Ireland has a low income tax rate (which it has), but because apart from that, Apple has a 'sweetheart deal' with Ireland through which it has ended up paying next to no tax.1

 

Ireland, like Malta, uses tax rates lower than the rest of other European countries to attract foreign investement.  Both can be said to have been successful in this strategy, especially with multinational companies, which seek to minimise the amount of tax that a financial group pays in total around the world.

 

This fact is permitted in the EU, which allows member states to have their own fiscal policy independent from the EU.  From the perspective of the member state, especially when having its currency being the Euro, this flexibility is important, as it is not possible for a country to devalue its currency in precarious financial situations.  Fiscal policy can be a way in which a country can stimulate its economy.

 

So what is the problem?  The problem is that large multinational companies, which make billions each year, organise themselves us such a way that globally in fact they pay next to no tax.  There is therefore the problem of equity.  Why should a worker who works hard and earning a few thousands, or a small local company, end up paying much lower taxes as a percentage than the multinational giants?

 

These companies play governements against each other, and often seem to cite places of work with governments, threatening to leave if they don't get such and such a condition.  And many times, governments, and also unions, end up giving in.

 

The EU has decided to take a political decision with Apple, and probably take some more against other large companies.  It is ironic that Ireland, which stands to gain these billions if Apple decides to pay them (which it has no intention of doing), is determined to fight this decision.

 

One can see here how governments are, in fact, powerless next to multinational companies.  This is a negative consequence of globalisation.

 

If the EU is serious in pursuing this line, this has serious implications for other countries.  In Malta, the classic example is the multinational ST Microelectronics.  This company is so important for Malta that year after year it accounts for half the exports of the country.  Half!  It is also said to be the largest private employer on the island.

 

You can imagine the attention paid by government ministers to every sneeze heard at Ħal Kirkop.

 

ST Microelectronics, then SGS ATES, became interested in investing in Malta at the time of the Labour administration of Dom Mintoff in 1981, with an agreement reportedly giving it the right to operate in Malta without paying income tax for fifty years.2  Naturally, this is not the only advantage - Maltese workers are well known for their diligence, high levels of education and use of the English language.

However to come back to the subject, can the EU now decide to object to an agreement of this type, as old as it might be?

 

The storm clouds are gathering.  As an example, at the start of this month, the Austrian Chancellor grumbled that some countries of the EU like Malta, Luxembourg, Holland and Ireland offer low taxes for multinational companies, with detriment to the economy of the rest of Europe.3  Naturally, grumbling does not achieve anything, as the right for countries to choose their fiscal policy is part of the Euro monetary union,4 and Malta intends to maintain its position that fiscal policy is the prerogative of the country's government,5 as it should do in the national interest.

 

Nevertheless, governments around the world need to realise that in this globalised world of today, multinational companies are playing the tax game very well (for them) with detriment to the global economy.

 

It seems to me that governments are strong with the weak, and weak with the strong.  There is scope for more cooperation on this subject between governments around the world, and certainly in the EU, although the temptation for a government to take advantage of the situation will probably also increase!

 

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Ħafna minnkom aktarx semgħu dwar id-deċiżjoni tal-Kummissjoni tal-Unjoni Ewropea sabiex tintervjeni fis-sistema finanzjarja ta' membru tal-UE, l-Irlanda, u tordna lill-kumpannija ġganteska Apple, li għandha uffiċċju importanti tagħha f'dak il-pajjiż, biex tħallas taxxa b'arretrati ta' €13 biljun lill-Irlanda.  

 

Qed tagħmel dan mhux għax l-Irlanda għandha rata ta' taxxa baxxa (li għandha), imma għax apparti dan, l-Apple ingħatat 'rata tal-maħbubin' mill-Irlanda li biha spiċċat tħallas ftit li xejn.1

 

L-Irlanda, bħal Malta, tuża r-rata ta' taxxa iktar baxxa mill-bqija tal-pajjiżi Ewropej biex tħajjar investiment barrani.  It-tnejn irid jingħad li kellhom suċċess b'din l-istrateġija, speċjalment ma' kumpanniji multinazzjonali, li jfittxu li jnaqqsu l-ammont ta' taxxa li l-grupp finanzjarju jħallas fit-total madwar id-dinja.

 

Dan fil-fatt huwa permess fl-UE, li tippermetti lill-pajjiżi membri tagħha li jkollhom politika fiskali tagħhom indipendenti mill-UE.  Mill-perspettiva tal-pajjiż membru, speċjalment jekk il-munita tiegħu hija l-Ewro, dan il-flessibiltà hija importanti, għax mhux possibbli li pajjiż jiżvaluta l-munita tiegħu f'sitwazzjoni prekarja finanzjarja.  Politika fiskali jista' jkun mezz kif pajjiż jista' jistimula l-ekonomija tiegħu.

 

Allura x'inhi l-problema?  Il-problema hi li l-kumpannija kbar multinazzjonali, li jagħmlu l-biljuni kbar kull sena, jorganizzaw lilhom infushom b'tali mod li globalment fil-fatt iħallsu ftit li xejn taxxa.  Allura hemm il-problema tal-ekwita.  Għaliex ħaddiem li jmur għax xogħol li jaqla l-ftit eluf, jew kumpannija żgħira lokali, jistgħu jispiċċaw iħallsu taxxa bħala perċentwal ħafna inqas mill-ġganti multinazzjonali?

Dawn il-kumpannija jilagħbu lill-gvernijiet kontra xulxin, u spiss jidhru li joqogħdu jdendlu l-postijiet tax-xogħol li joffru lill-ħaddiema quddiem il-gvernijiet, u jheddu li jitilqu jekk ma jkollhomx it-tali kundizzjoni llaxkata.  U ħafna drabi l-gvernijiet, u anke l-unjins, jispiċċaw iċedu.

 

L-UE ddeċidiet li tieħu deċiżjoni politika fil-każ tal-Apple, u probabbilment tieħu deċiżjonijiet simili kontra kumpanniji kbar oħra.  L-ironija hi li l-Irlanda, li għandha biex tieħu dawn il-biljuni kollha jekk l-Apple tiddeċiedi li tħallashom (li m'għandha l-ebda intenzjoni li tagħmel), beħsiebha tiġġieled din id-deċiżjoni.

 

Hawnhekk wieħed jista' jara kemm il-gvernijiet, fil-fatt, huma bla saħħa ħdejn il-kumpanniji multinazzjonali.  Din hija konsegwenza negattiva tal-globalizzazzjoni.

 

Jekk l-UE hija serja li ssegwi din il-linja, din għandha implikazzjonijiet serji għal pajjiżi oħra.  F'Malta, l-eżempju klassiku huwa l-kumpannija multinazzjonali ST Microelectronics.  Din il-kumpannija tant hi importanti għal Malta li sena wara sena tkopri nofs l-esportazzjoni tal-pajjiż.  Nofs!  Jingħad ukoll li hija l-iktar impriża privata li timpjega nies fil-pajjiż.

 

Tista' timmaġina kemm joqogħdu attenti l-ministri tal-gvern għal kull għatsa li tinstema minn Ħal Kirkop.

 

L-ST Microelectronics, dakinhar SGS ATES, ġiet imħajra tinvesti f'Malta fi żmien gvern Laburista ta' Dom Mintoff fl-1981, bi ftehim li rrapurtat jagħtiha dritt topera f'Malta mingħajr ma tħallas taxxa fuq id-dħul għal ħamsin sena.2  Naturalment dan mhux l-uniku vantaġġ - il-ħaddiema Maltin huma magħrufa għall-bżulija tagħhom, il-livell għoli ta' edukazzjoni u l-użu tal-Ingliż.

 

Imma nerġgħu niġu għas-suġġett, tista' l-UE issa tiddeċiedi li toġġezzjona għal ftehim ta' dan it-tip, antik kemm hu?

 

L-irwiefen qed iqumu.  Per eżempju, fil-bidu ta' dan ix-xahar, il-Kanċillier Awstrijak gerger mill-pajjiżi tal-UE bħal Malta, il-Lussemburgu, l-Olanda u l-Irlanda, li joffru taxxi baxxi għall-kumpanniji multinazzjonali, b'detriment għall-ekonomija tal-bqija tal-Ewropa.3  Naturalment, mit-tgergir mhu se jsir xejn, għax id-dritt ta' pajjiżi li jagħżlu l-politika fiskali tagħhom hija parti mill-unjoni monetarja tal-Ewro,4 u Malta beħsiebha żżomm il-pożizzjoni li l-politika fiskali hija prerogattiva tal-gvern tal-pajjiż,5 kif għandha tagħmel fl-interess nazzjonali.

 

Madankollu, il-gvernijiet ta' madwar id-dinja jridu jirrealizzaw li fid-dinja globalizzata tal-lum, il-kumpanniji multinazzjonali qed jilagħbu l-logħba tat-taxxa tajjeb ħafna (għalihom) b'detriment għall-ekonomija globali.

 

Jien naraha li l-gvernijiet jimxu b'saħħa mad-dgħajjef, u b'dgħufija ma' min hu b'saħħtu.  Hemm lok għal iktar kooperazzjoni fuq dan is-suġġett bejn gvernijiet fid-dinja, u ċertament fl-UE, għalkemm it-tentazzjoni ta' xi gvern li jieħu vantaġġ mis-sitwazzjoni aktarx li tikber!

 

 

1http://www.forbes.com/sites/leesheppard/2016/09/05/the-eu-case-against-apples-irish-tax-deal/#4f9ca7a87e2b, retrieved 6/9/2016

2http://www.embedded.com/print/4056364, retrieved 6/9/2016

3http://www.timesofmalta.com/articles/view/20160903/local/malta-tax-regime-lacks-solidarity-with-european-economy-austrian.623927, retrieved 6/7/2016

4https://www.ecb.europa.eu/mopo/eaec/fiscal/html/index.en.html, retrieved 6/7/2016

5http://www.timesofmalta.com/articles/view/20160904/local/taxation-issues-a-matter-for-national-governments-prime-minister.624044, retrieved 6/7/2016

1http://www.forbes.com/sites/leesheppard/2016/09/05/the-eu-case-against-apples-irish-tax-deal/#4f9ca7a87e2b, retrieved 6/9/2016

2http://www.embedded.com/print/4056364, retrieved 6/9/2016

3http://www.timesofmalta.com/articles/view/20160903/local/malta-tax-regime-lacks-solidarity-with-european-economy-austrian.623927, retrieved 6/7/2016

4https://www.ecb.europa.eu/mopo/eaec/fiscal/html/index.en.html, retrieved 6/7/2016

5http://www.timesofmalta.com/articles/view/20160904/local/taxation-issues-a-matter-for-national-governments-prime-minister.624044, retrieved 6/7/2016