Courts
The case stems from an IRS audit of Eaton’s 2017-2019 tax returns, focused on whether the company improperly shifted intellectual property (IP) to Ireland. Photo: Getty
Eaton, the Irish-headquartered global power management group, is being allowed to shield performance evaluations from the US tax authorities for some of its employees in Ireland, following a cross-border tax dispute.
The tussle between Eaton and the IRS over the Irish employee-performance evaluations has become a test of whether American authorities can compel multinationals to disclose data about their European workers, given that the EU’s General Data Protection Regulation (GDPR) restricts the transfer of personal data outside the bloc.
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