Ireland


'Ireland' Articles

U.S. Warns Apple Tax Probe in Europe Could Set 'Undesirable Precedent'

Just weeks before the European Commission is expected to make a decision in its landmark Apple tax probe, the U.S. Treasury department has criticized the Brussels-based body for "threatening international agreements on tax reform," and warned that a decision against the iPhone maker could "set an undesirable precedent." Apple's offices in Cork, Ireland According to Financial Times, the U.S. Treasury said the European Commission is becoming a "supranational tax authority," going beyond acceptable enforcement of competition and state aid law. The U.S. has previously called out Brussels for setting unfair and "disturbing" precedents and singling out U.S. companies. Brussels has accused Apple of sheltering tens of billions of dollars in Ireland, partly in exchange for creating jobs in the country, a deal that could be considered illegal state aid. Apple 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 sub-2% it has paid in Ireland, 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 is expected in September or October, according to Ireland's finance minister Michael Noonan. Apple CEO Tim Cook said last month that the company would appeal any unfavorable ruling against the company. Note: Due to the

Nobel-Winning Economist Calls Apple's Irish Tax Arrangement 'Fraud'

Joseph Stiglitz, an economic professor at Columbia University and 2001 recipient of the Nobel Memorial Prize in Economic Sciences, has described Apple's tax arrangements in Ireland as "a fraud" in a recent interview with Bloomberg TV."Here we have the largest corporation in capitalization not only in America, but in the world, bigger than GM was at its peak, and claiming that most of its profits originate from about a few hundred people working in Ireland -- that’s a fraud,” Stiglitz said. “A tax law that encourages American firms to keep jobs abroad is wrong, and I think we can get a consensus in America to get that changed."Under current U.S. laws, Apple is able to shift billions of dollars in profits to Ireland, where it operates multiple subsidiaries, sheltering those earnings from up to a 35 percent corporate tax rate in the United States. Ireland has a much lower corporate tax rate of 12.5 percent, but Apple is believed to have a sweetheart deal with Ireland that sees it pay less than 2 percent in exchange for creating jobs in the country. Apple has been the subject of a European Commission probe related to its Irish tax arrangements since June 2014, with the executive body investigating whether the deal constitutes illegal state aid. Ireland's finance minister Michael Noonan recently said he expects a decision to be reached by September or October, and Apple could owe more than $8 billion in back taxes depending on the outcome. Apple insists it is the largest taxpayer in the world and that it pays every cent of tax it owes under current laws. In a late 2015

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

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

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

Apple to Create 1,000 New Jobs in Ireland Amid Tax Probe

Apple plans to hire an additional 1,000 employees at its Cork offices in Ireland, a country where the iPhone maker shelters multi-billion-dollar profits from corporate taxes in the United States, according to Reuters. Apple's offices in Cork, Ireland Ireland's main foreign investment agency, the IDA, said Apple was to add 1,000 jobs to its office in Cork by mid-2017 from 5,000 at present. It said the company had also added 1,000 jobs in the past year.In September 2014, the European Commission accused Apple of receiving illegal state aid from Ireland in return for maintaining jobs. A decision in the investigation is due after Christmas, according to Ireland's finance minister Michael Noonan. Apple’s Tim Cook says Cork operations won't be affected by EC tax investigation outcome. Full interview on 6.1 news https://t.co/sdY8mbdMey— RTÉ News (@rtenews) November 11, 2015 Apple has paid a corporate tax rate of about 2.5% in Ireland on $109 billion in profits over the past five years, far less than an average 12.5% paid by many other companies in the country. The U.S. has an average corporate tax rate of about 15% to

Apple Watch Launches in Austria, Denmark and Ireland September 25

Apple has updated its regional websites for Austria, Denmark and Ireland to announce the Apple Watch will be available on September 25. Apple Watch models with prices were also added to the Apple Store app in Norway and Poland, but no release dates have been listed in either country. Austria - Apple Watch Sport: €399 to €449 - Apple Watch: €649 to €1,249 - Apple Watch Edition: €11,000 to €18,000 Denmark - Apple Watch Sport: 3.099,00 kr. to 3.499,00 kr. - Apple Watch: 4.999,00 kr. to 9.699,00 kr. - Apple Watch Edition: 85.000,00 kr. to 140.000,00 kr. Ireland - Apple Watch Sport: €429 to €479 - Apple Watch: €679 to €1,279 - Apple Watch Edition: €11,300 to €18,500 MacRumors previously reported the Apple Watch was expected to launch in Austria, Denmark and India this month, leaving India as the sole country of the three that has yet to announce an Apple Watch release date. Austria, Denmark and Ireland will be part of the fifth Apple Watch launch wave: April 24: Australia, Canada, China, France, Germany, Hong Kong, Japan, U.K. and U.S. June 26: Italy, Mexico, Singapore, South Korea, Spain, Switzerland and Taiwan July 17: The Netherlands, Sweden, Thailand July 31: New Zealand, Russia, Turkey September 25: Austria, Denmark, Ireland Apple Watch sales have also expanded to dozens of Apple Premium Resellers