U.S. tax avoidance clampdown a potential headache for AppleWASHINGTON (Reuters) - Apple Inc and other U.S. multinationals will face new curbs on tax loopholes under a rule imposed by Washington on Thursday, part of a scramble among governments worldwide to bolster their corporate tax bases. Acting shortly after a European Union grab for billions of dollars in back taxes from Apple, the U.S. Treasury said it was tightening restrictions on companies’ use of foreign tax credits to reduce what they owe in U.S. taxes. “We are closing another tax loophole that contributes to the erosion of our tax base,” Treasury Assistant Secretary for Tax Policy Mark Mazur said in a statement.  The fight for multinational tax revenues escalated on Aug. 30 when the EU ruled Ireland was giving improper state aid to Apple in the form of a deal for low taxes. The EU ordered Apple to pay Ireland 13 billion euros ($14.6 billion) in back taxes, prompting U.S. Treasury Secretary Jack Lew to express concern the EU ruling could undermine the U.S. tax base. Analysts have speculated whether Apple would be able to cut its U.S. tax bill by claiming foreign tax credits for its extra tax bill in Ireland.  Under normal circumstances, U.S. companies can reduce the taxes they owe the U.S. government by the value of the tax credits they claim for taxes paid abroad on foreign profits. No U.S. tax is due on those profits until they are brought into the United States, or repatriated. The new rule will prevent companies faced with back tax bills from “splitting,” a strategy that allows companies to bring foreign tax credits into the United States without repatriating the income from which they were derived. Apple had no comment on Treasury’s tax notice. The technology giant is not the only U.S. company in the crosshairs of EU state aid investigations. Starbucks Corp has been ordered to pay up to 30 million euros ($33 million) to the Dutch state, while Amazon.com Inc and McDonald’s Corp are under investigation by the EU’s executive arm. The new rule was likely to ratchet up transatlantic tensions over corporate taxes while eliminating one more strategy U.S. companies can use to cushion the blow from increasingly aggressive EU tax collection efforts. The tax notice specifically cited European Union state aid investigations as a risk to U.S. revenues. The Treasury had no comment on whether its notice would have an impact on Apple directly, but a spokesperson said the notice applies to all companies required by a foreign government to pay additional taxes, including those hit by state-aid cases. politicsNews
tax avoidance clampdown potential headache applewashington reuters apple inc multinational face new curb tax loopholes rule imposed washington thursday part scramble among governments worldwide bolster corporate tax bases acting shortly european union grab billions dollars back taxes apple treasury said tightening restrictions companies use foreign tax credits reduce owe taxes we closing another tax loophole contributes erosion tax base treasury assistant secretary tax policy mark major said statement the fight multinational tax revenues escalated eu ruled ireland giving improper state aid apple form deal low taxes the eu ordered apple pay ireland billion euros billion back taxes prompting treasury secretary jack new express concern eu ruling could undermine tax base analysts speculated whether apple would able cut tax bill claiming foreign tax credits extra tax bill ireland under normal circumstances companies reduce taxes owe government value tax credits claim taxes paid abroad foreign profits no tax due profits brought united states repatriated the new rule prevent companies faced back tax bills splitting strategy allows companies bring foreign tax credits united states without repatriation income derived apple comment treasury tax notice the technology giant company crosshair eu state aid investigations starbucks corp ordered pay million euros million dutch state inc mcdonald corp investigation eu executive arm the new rule likely hatchet transatlantic tensions corporate taxes eliminating one strategy companies use cushion blow increasingly aggressive eu tax collection efforts the tax notice specifically cited european union state aid investigations risk revenues the treasury comment whether notice would impact apple directly spokesperson said notice applies companies required foreign government pay additional taxes including hit cases politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: U.S. tax avoidance clampdown a potential headache for AppleWASHINGTON (Reuters) - Apple Inc and other U.S. multinationals will face new curbs on tax loopholes under a rule imposed by Washington on Thursday, part of a scramble among governments worldwide to bolster their corporate tax bases. Acting shortly after a European Union grab for billions of dollars in back taxes from Apple, the U.S. Treasury said it was tightening restrictions on companies’ use of foreign tax credits to reduce what they owe in U.S. taxes. “We are closing another tax loophole that contributes to the erosion of our tax base,” Treasury Assistant Secretary for Tax Policy Mark Mazur said in a statement.  The fight for multinational tax revenues escalated on Aug. 30 when the EU ruled Ireland was giving improper state aid to Apple in the form of a deal for low taxes. The EU ordered Apple to pay Ireland 13 billion euros ($14.6 billion) in back taxes, prompting U.S. Treasury Secretary Jack Lew to express concern the EU ruling could undermine the U.S. tax base. Analysts have speculated whether Apple would be able to cut its U.S. tax bill by claiming foreign tax credits for its extra tax bill in Ireland.  Under normal circumstances, U.S. companies can reduce the taxes they owe the U.S. government by the value of the tax credits they claim for taxes paid abroad on foreign profits. No U.S. tax is due on those profits until they are brought into the United States, or repatriated. The new rule will prevent companies faced with back tax bills from “splitting,” a strategy that allows companies to bring foreign tax credits into the United States without repatriating the income from which they were derived. Apple had no comment on Treasury’s tax notice. The technology giant is not the only U.S. company in the crosshairs of EU state aid investigations. Starbucks Corp has been ordered to pay up to 30 million euros ($33 million) to the Dutch state, while Amazon.com Inc and McDonald’s Corp are under investigation by the EU’s executive arm. The new rule was likely to ratchet up transatlantic tensions over corporate taxes while eliminating one more strategy U.S. companies can use to cushion the blow from increasingly aggressive EU tax collection efforts. The tax notice specifically cited European Union state aid investigations as a risk to U.S. revenues. The Treasury had no comment on whether its notice would have an impact on Apple directly, but a spokesperson said the notice applies to all companies required by a foreign government to pay additional taxes, including those hit by state-aid cases. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: tax avoidance clampdown potential headache applewashington reuters apple inc multinational face new curb tax loopholes rule imposed washington thursday part scramble among governments worldwide bolster corporate tax bases acting shortly european union grab billions dollars back taxes apple treasury said tightening restrictions companies use foreign tax credits reduce owe taxes we closing another tax loophole contributes erosion tax base treasury assistant secretary tax policy mark major said statement the fight multinational tax revenues escalated eu ruled ireland giving improper state aid apple form deal low taxes the eu ordered apple pay ireland billion euros billion back taxes prompting treasury secretary jack new express concern eu ruling could undermine tax base analysts speculated whether apple would able cut tax bill claiming foreign tax credits extra tax bill ireland under normal circumstances companies reduce taxes owe government value tax credits claim taxes paid abroad foreign profits no tax due profits brought united states repatriated the new rule prevent companies faced back tax bills splitting strategy allows companies bring foreign tax credits united states without repatriation income derived apple comment treasury tax notice the technology giant company crosshair eu state aid investigations starbucks corp ordered pay million euros million dutch state inc mcdonald corp investigation eu executive arm the new rule likely hatchet transatlantic tensions corporate taxes eliminating one strategy companies use cushion blow increasingly aggressive eu tax collection efforts the tax notice specifically cited european union state aid investigations risk revenues the treasury comment whether notice would impact apple directly spokesperson said notice applies companies required foreign government pay additional taxes including hit cases politicsnews