corporate tax


'corporate tax' Articles

Ireland Expects EU to Reach Decision in Apple Tax Probe by October

A decision in the European Commission probe of Apple's alleged "sweetheart tax deal" in Ireland is expected to be reached by September or October, according to Ireland's finance minister Michael Noonan (via Reuters)."Commissioner Vestager indicated to me that there wouldn't be a decision in July but there would probably be a decision early in the autumn. My expectation is September or early October," Michael Noonan told a news conference after meeting antitrust chief Margrethe Vestager on Tuesday.Apple is accused of sheltering tens of billions of dollars in Ireland in exchange for creating jobs in the country, a deal that could be considered illegal state aid. The company operates multiple subsidiaries in Ireland to pay significantly less tax outside of the U.S., where it earns up to two-thirds of its revenue. Apple's $64.1 billion in profits generated from 2004 to 2012 could be subject to a higher 12.5% tax rate, compared to the less than 2% that it pays, in which case it could owe more than $8 billion in back taxes. Apple insists that it is the largest taxpayer in the world and pays every cent of tax it owes under current laws. A decision in the tax probe was originally expected in late 2015, but the European Commission's requests for additional information pushed the investigation into 2016. Apple is one of several multinational corporations to be scrutinized for corporate tax avoidance in Europe recently, alongside Google, McDonald's, IKEA, and others. Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in

Steve Wozniak Says Apple Should Pay 50% Tax Rate

Apple co-founder Steve Wozniak has spoken out in favor of Apple and all other companies in the world paying the same 50% tax rate he does, calling anything less "unfair". In an interview with the BBC published this morning, Wozniak, who left Apple in 1986, said that every company in the world should pay the same rate he pays as an individual. "I do a lot of work, I do a lot of travel and I pay over 50% of anything I make in taxes and I believe that's part of life and you should do it," he said. Tax avoidance has been brought back into focus by the recent Panama Papers revelations, a huge leak of documents that lifted the lid on how the rich and powerful use tax havens to hide their wealth. Asked about companies maximizing profit and the related issue of tax havens, Wozniak said he was personally never interested in making money, unlike his former partner, Steve Jobs. "Jobs started Apple Computers for money, that was his big thing and that was extremely important and critical and good," he said. "[But] we didn't think we'd be figuring out how to go off to the Bahamas and have special accounts like people do to try to hide their money." "On the other hand," he continued, "any company that is a public company, its shareholders are going to force it to be as profitable as possible and that means financial people studying all the laws of the world and figuring out all the schemes that work that are technically legal. They're technically legal and it bothers me and I would not live my life that way." Asked if he worried that Apple had moved so far away from its

Apple to Attend EU Hearing on Tuesday to Discuss Taxes

Apple, Google, McDonald's, and IKEA representatives will be in Brussels on Tuesday to discuss their tax deals in Europe, reports Reuters. The hearing will be hosted by the European Parliament's tax committee, but the lawmakers do not have the power to order any changes, according to the report. Nevertheless, the meeting should raise some important questions about each company's compliance with EU tax rules in the past and present. Apple is one of several multinational corporations that have been targeted for possible corporate tax avoidance in Europe. In September 2014, the European Commission formally accused the iPhone maker of receiving illegal state aid from Ireland, where it has reportedly paid a reduced tax rate of around 1.8% on it overseas profits. Apple operates multiple subsidiaries in Ireland to pay significantly less tax outside of the U.S., where it earns up to 60% of its revenue. The company's $64.1 billion in profits generated from 2004 to 2012 could be subject to a higher 12.5% tax rate, in which case it would owe more than $8 billion in back taxes. A decision in the tax probe was originally expected in late 2015, but the European Commission's request for additional information has pushed the investigation into 2016. Last week, EU competition chief Margrethe Vestager told reporters "don't hold your breath" in terms of when the commission will make a decision. Apple previously said it pays all of its taxes and added that it would appeal any decision made against the company. Update: While Reuters says the hearing will take place on

EU Competition Chief on Apple Tax Probe: 'Don't Hold Your Breath'

A decision in the European Commission's probe of Apple's tax affairs in Ireland may not be reached soon, according to EU competition chief Margrethe Vestager (via Bloomberg).“Don’t hold your breath,” she told reporters in Brussels on Monday about the timing of decisions targeting Apple and online shopping giant Amazon.com Inc, whose tax affairs in Luxembourg are also under intense scrutiny. “I’m just warning you.”Apple is one of several multinational corporations, alongside Amazon, McDonald's, Starbucks, and others, that have been targeted for possible corporate tax avoidance in Europe. Brussels launched the probe in June 2014, and it formally accused the iPhone maker of receiving illegal state aid from Ireland three months later. If Apple's $64.1 billion in profits generated from 2004 to 2012 are subjected to a 12.5% tax rate, compared to its current foreign tax rate of about 1.8%, the company could owe more than $8 billion in back taxes. Apple continues to deny any wrongdoing, and vows to appeal any decision that goes against the company. Apple operates multiple subsidiaries in Ireland to pay significantly less tax outside of the U.S., where it earns up to 60% of its revenue. A decision in the tax probe was originally expected in late 2015, but the European Commission's request for additional information has pushed the investigation into 2016. Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow

Apple Could Owe More Than $8 Billion in European Tax Probe

Apple could owe more than $8 billion in back taxes if the European Commission finds issue with the iPhone maker's corporate tax policies in Ireland, according to analysis by Bloomberg Intelligence. Apple is one of several multinational corporations that have been scrutinized for corporate tax avoidance in Europe over the past few years. The European Commission began Apple's tax probe in June 2014, and formally accused the iPhone maker of receiving illegal state aid from Ireland three months later. The company's $64.1 billion in profit generated from 2004 to 2012 could be subject to a 12.5% tax rate, compared to its current foreign tax rate of about 1.8%, depending on the outcome of the investigation. A decision in the probe is expected in Brussels by March, possibly after the 2016 Irish election. Apple's tax breakdown in Ireland (Image: Bloomberg Intelligence) Apple operates multiple subsidiary companies in Ireland to pay significantly less tax outside the U.S., where it earns about 55% of its revenue. Apple continues to deny any wrongdoing, and both the company and Ireland vow to take the European Commission to court over any negative verdict. Last month, Apple agreed to pay 318 million euros in Italy to settle an investigation that accused the company of booking profits generated in Italy through an Irish subsidiary, in an effort to lower its taxable income base and save 879 million euros between 2008 and 2013. Italian regulators concluded that tax probe in March. Note: Due to the political nature of the discussion regarding this topic, the discussion

Apple to Pay 318 Million Euros in Italy to Settle Corporate Tax Probe

Apple has agreed to pay 318 million euros in Italy to settle an investigation that determined the iPhone and iPad maker failed to pay nearly triple that amount in corporate taxes in the country over a five year period, according to Italian newspaper La Repubblica. Italian regulators in Milan concluded a tax probe of Apple in March, accusing the company of booking profits generated in Italy through an Irish subsidiary in an effort to lower its taxable income base and save 879 million euros between 2008 and 2013. Apple has yet to comment on the deal, but previously said it has paid all necessary taxes in countries that it operates. "These new allegations against our employees are completely without merit and we’re confident this process will reach the same conclusion," the company said in March. Apple Italia is part of the company's European operation headquartered in Ireland, where Apple pays a significantly lower corporate tax rate compared to other EU countries. Ireland has a corporate tax rate of 12.5% for normal business activities, compared to a standard rate of 27.5% in Italy, per The Guardian. Apple faces a similar Irish tax probe by the European Commission, which formally accused the company of receiving illegal state aid from Ireland in September 2014. A decision in the lengthy investigation has likely been delayed until early 2016, as the Brussels-based executive cabinet has requested supplementary questionnaires. Apple's tax policies in Europe have come under intense scrutiny over the past three years, as the company is said to utilize multiple

Tim Cook Calls Apple's Tax Avoidance Accusations 'Total Political Crap'

60 Minutes has shared a preview of Tim Cook's latest interview with journalist Charlie Rose, in which the Apple CEO emphatically counters the idea that Apple has created elaborate schemes to pay little or no U.S. corporate taxes on its overseas revenue. JUST IN: Apple CEO tells "60 Minutes" that the notion of the tech giant avoiding taxes is "total political crap". https://t.co/yGoxhM29fZ— CNBC Now (@CNBCnow) December 18, 2015 Cook described the tax avoidance accusations as "total political crap," and deflected blame on the U.S. tax code for being far outdated. He added that repatriating the money in the U.S. is not "a reasonable thing to do" due to high corporate tax rates.Rose: You also have more money overseas probably than any other American company. […] Why don’t you bring that home? Cook: “It would cost me 40% to bring it home, and I don’t think that’s a reasonable thing to do. This is a tax code that was made for the industrial age, not the digital age. It’s backwards. It’s awful for America. It should have been fixed many years ago. It’s past time to get it done.” Rose: Here’s what they concluded: “Apple is engaged in a sophisticated scheme to pay little or no corporate taxes on $74 billion in revenue held overseas.” Cook: “That is total political crap. There is no truth behind it. Apple pays every tax dollar we owe."Apple's tax policies have been closely investigated over the past few years in Europe. Earlier this year, for example, Italian regulators accused Apple of booking profits generated in the country through an Irish subsidiary in an effort to

European Probe of Apple's Irish Tax Policies Extended to 2016

A decision in the European Commission probe of Ireland's alleged "sweetheart tax deal" with Apple will likely be delayed until after the Irish elections in early 2016, as Financial Times reports the executive cabinet has now requested supplementary questionnaires in the lengthy investigation. The European Commission began Apple's Irish tax probe in June 2014, and the Brussels-based executive body formally accused the iPhone maker of receiving illegal state aid from Ireland in September 2014. A decision was originally expected earlier this year, but the additional information requested will likely cause further delays. Apple's tax policies have been scrutinized on numerous occasions over the past three years, as the company is said to utilize multiple subsidiary companies located in the Irish city of Cork to move money around without significant tax penalties. Apple continues to deny any wrongdoing, and Ireland vows to take the European Commission to court over any negative ruling, according to the report. Apple's Irish tax probe is part of a larger crackdown by the European Commission on possible corporate tax avoidance in EU countries. Earlier this month, the commission reportedly accused McDonald's of "benefiting from arrangements that allowed it to pay no tax on European royalties in Luxembourg," and Fiat and Starbucks were ordered in October to repay up to €30 million in back

Italian Regulators Conclude Corporate Tax Investigation Against Apple

Italian regulators have completed an investigation into allegations that Apple failed to pay €879 million ($964 million) in corporate taxes, according to Reuters. The report states that, under Italian law, prosecutors can now ask a judge to bring the case to trial. Apple claims that it has paid all necessary taxes in countries that it operates and is confident that the process will be resolved. Apple's flagship Via Roma retail store in Torino, Italy The investigations accuse Apple of booking profits generated in Italy through an Irish subsidiary in an effort to lower its taxable income base and save nearly €900 million from 2008 through 2013. Apple argues that it's "one of the largest tax payers in the world and paid every euro of tax it owed wherever it did business," and believes that the allegations against its employees are without merit.It said the Italian tax authorities had audited Apple’s Italian operations in 2007, 2008 and 2009 and confirmed it was in full compliance with the OECD documentation and transparency requirements. "These new allegations against our employees are completely without merit and we’re confident this process will reach the same conclusion," it said.Apple is one of several multinational tech companies, including Amazon and Google, that have faced corporate tax investigations in the United States and Europe. The U.S. Senate accused Apple of avoiding billions in income taxes in May 2013, while the European Union accused the company of receiving illegal state aid from Ireland after completing a formal investigation into its questionable