¹ International Monetary Fund, Spillovers on International Corporate Taxation, IMF Staff Report 11 (May 9, 2014), https://www.imf.org/external/np/pp/eng/2014/050914.pdf; See also Henn, Markus, Tax Havens and the Taxation of Transnational Corporations, Friedrick Ebert Stiftung (June 2013), http://library.fes.de/pdf-files/iez/global/10082.pdf.Google Scholar

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³¹ Id. at para. 158.Google Scholar

³² Id. at paras. 65, 158. Local employment provided by Apple was also discussed at this meeting.Google Scholar

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³⁶ Id. There was also a capital allowance permitted to be claimed, but not exceeding “by USD [1–10] million the depreciation charged in the accounts.” Id.Google Scholar

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⁵⁷ Id. at para. 257.Google Scholar

⁵⁸ Id. paras. 249–53. The EC cited Joined Cases C-182/03 and C-217/03 Belgium and Forum 187 ASBL v. Commission, EU:C:2006:416 as authority that:Google Scholar

[A] reduction in the taxable base that results from a tax measure that enables a taxpayer to employ transfer prices in intra-group transactions that do not resemble prices which would be charged in conditions of free competition between independent undertakings negotiating under comparable circumstances at arm's length confers a selective advantage on that taxpayer for the purposes of Article 107(1) of the Treaty.Google Scholar

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⁵⁹ Id. at para. 253 (emphasis added).Google Scholar

⁶⁰ Id. at para. 260.Google Scholar

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⁶² Id. at para. 261.Google Scholar

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⁷² Id. at para. 280.Google Scholar

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⁸² Id. at paras. 297–301. Regarding marketing, the EC also noted a 2008 marketing agreement between Apple Inc. and ASI which had the Irish address in Cork as the party contact information for ASI. Id. at para. 133.Google Scholar

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⁸⁴ Id. at para. 306.Google Scholar

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⁸⁶ Id. (emphasis added and footnotes excluded).Google Scholar

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¹⁰⁴ Id. at para. 414.Google Scholar

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¹¹³ The size of MNEs is calculated by number of entities within it.Google Scholar

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¹¹⁹ Debra Johnson & Colin Turner, International Business 37, 101 (Routledge 2003).Google Scholar

¹²⁰ Rugman, Alan M., The Regional Multinationals 3 (Cambridge Univ. Press 2005).Google Scholar

¹²¹ Indirect ownership of MNEs plays a role in affecting the power structures and key players behind such firms' roles in the global economy. While direct ownership connections may not be at a majority level in any individual MNE parent company, individual shareholding companies can themselves be subject to control, forming groups of inter-related shareholding companies. In other words, an MNE is one power structure, subject to the power structures represented in its ownership. On the quandary of indirect ownership see S. Vitali, J. B. Glattfelder, The Network of Global Corporate Control 6:10 PloSONE (2011); Glatttfelder, James B., Ownership Networks and Corporate Control: Mapping Economic Power in a Globalized World, ETH Zurich, Diss. ETH No. 1974, 156 (2010), http://e-collection.library.ethz.ch/eserv/eth:2007/eth-2007-02.pdf.Google Scholar

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¹²⁸ CEO Tim Cook's narrative before the US Senate Subcommittee also took this tone, emphasizing Apple as a US company. He emphasized that 95% of the creativity behind Apple products was based in California. See Shields, Todd, Apple CEO Cook Rebuts $9 Billion Tax-Avoidance Claim, Bloomberg (May 21, 2013), https://www.bloomberg.com/news/articles/2013-05-21/apple-ceo-cook-rebuts-9-billion-taxavoidance-claim; see also Campbell, Mikey, Apple Publishes Execs' Opening Statements from US Senate Testimony, Apple Insider (May 21, 2013), https://appleinsider.com/articles/13/05/21/apple-publishes-execs-opening-statements-to-us-senate-subcommittee (providing a link to a full copy of Tim Cook's opening statement before the permanent senate subcommittee on investigations); Mikey Campbell, Cook Statement, SCRIBD, https://www.scribd.com/document/142827825/Cook-Statement (last visited May 13, 2018) (providing an upload of Tim Cook's opening statement before the permanent senate subcommittee on investigations) [hereinafter Tim Cook Senate Statement].Google Scholar

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[T]he Commission cannot accept the reasoning set out in the [Apple's tax advisor] ad hoc report and the [Apple's 2^nd advisor] ad hoc study, both submitted by Apple, which include functions performed by Apple Inc. in the assessment of the allocation of profit of ASI and AOE. The Irish branches of ASI and AOE are not branches of Apple Inc., the latter being a separate legal entity recording profits separate from the profits of ASI and AOE.Google Scholar

Id. (emphasis added).Google Scholar

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¹⁶⁸ See Cobham & Jansky, supra note 138 at 7, 22–3 (reporting missing MNE tax payments to the United States for 2012 at US$ 84.8 billion).Google Scholar

¹⁶⁹ Indep. Comm'n for the Reform of Int'l Corp. Tax'n, Declaration 4 (2015), http://www.un.org/esa/ffd/wp-content/uploads/sites/2/2015/03/ICRICT_FINAL.pdf.Google Scholar

¹⁷⁰ Id. at 10–11.Google Scholar

¹⁷¹ See UNCTAD WIR 2016, supra note 110, at xiii.Google Scholar

¹⁷² Paul Sweeney, If Apple Won't Pay Tax What Hope is There for Civilization?, The Irish Times (Feb. 2, 2017), http://www.irishtimes.com/opinion/if-apple-wont-pay-tax-what-hope-is-there-for-civilisation-1.2959603; see Compania Gen. De Tabacos De Filipinas v. Collector of Internal Revenue, 275 U.S. 87, 100 (1927) (Holmes, J., dissenting).Google Scholar

¹⁷³ See EC Decision, supra note 7, at paras. 411–12.Google Scholar

¹⁷⁴ Id. at para. 381.Google Scholar

¹⁷⁵ Vanessa Barford & Gerry Holt, Google, Amazon, Starbucks: The Rise of “Tax Shaming”, BBC News Mag. (May 21, 2013), http://www.bbc.com/news/magazine-20560359; Simon Neville & Jill Treanor, Starbucks to Pay £20m in Tax Over Next Two Years After Customer Revolt, The Guardian (Dec. 6, 2012), https://www.theguardian.com/business/2012/dec/06/starbucks-to-pay-10m-corporation-tax (“Starbucks is volunteering to pay £10m in taxes in each of the next two years as it attempts to win back customers following revelations that it has paid no corporation tax in the UK in the past three years.”); Elle Hunt, Apple Paid No Tax in New Zealand for at Least a Decade, Reports Say, The Guardian (Mar. 22, 2017) https://www.theguardian.com/world/2017/mar/23/apple-paid-no-tax-in-new-zealand-for-at-least-a-decade-reports-say.Google Scholar

¹⁷⁶ See Cobham & Jansky, supra note 138, at 24.Google Scholar

¹⁷⁷ Google, for its part, employs the so-called “Double Irish” or “Dutch Sandwich” in its tax strategy. See Jeremy Kahn & Martijn Van Der Starre, Google Lowered 2015 Taxes by $3.6 Billion Using “Dutch Sandwich”, Bloomberg (Dec. 21, 2016), https://www.bloomberg.com/news/articles/2016-12-21/google-lowered-2015-taxes-by-3-6-billion-using-dutch-sandwich (“By moving most of its international profits to Bermuda, the company was able to reduce its effective tax rate outside the U.S. to 6.4 percent in 2015, according to Alphabet's filings with the U.S. Securities and Exchange Commission.”). Google arrived at a tax settlement of 130 million pounds with the UK government in 2016, and French police are investigating Google for tax fraud in relation to the MNE's Irish structuring. See Womack, Brian, Google Agrees to Pay $185 Million in U.K. Tax Settlement, Bloomberg (Jan. 22, 2016), https://www.bloomberg.com/news/articles/2016-01-22/google-agrees-to-pay-185-million-in-uk-tax-settlement; Gaspard Sebag & Stephanie Bodoni, French Tax Investigators Swoop on Google's Paris Offices, Bloomberg (May 24, 2016), https://www.bloomberg.com/news/articles/2016-05-24/french-tax-investigators-swoop-on-google-s-paris-offices. Furthermore, Google—Alphabet Inc.—briefly displaced Apple as the world's largest MNE by market capitalization in February 2016. See PwC Global top 100 Companies, supra note 15, at 7.Google Scholar

¹⁷⁸ Naren Prasad, Policies for redistribution: The use of taxes and social transfers 27 (2008), http://www.oit.org/wcmsp5/groups/public/—dgreports/—inst/documents/publication/wcms_193159.pdf. Prasad concludes:Google Scholar

Id. Google Scholar