Ireland May End Apple Tax Residency Loophole

Applelogo.pngIreland may shut down a tax loophole that allowed Apple to avoid declaring itself a tax resident in any country, reports The Street.

Apple, which currently has multiple subsidiary companies in the Irish city of Cork (Apple Operations International (AOI) Apple Operations Europe, Apple Operations, Apple Sales International and Apple Distribution International), is able to move money around the world without tax penalties because companies managed and controlled abroad but located in Ireland are not subjected to taxes.

"The second measure to be included in the Finance Bill is a change to our company residence rules aimed at eliminating mismatches – that can exist between tax treaty partners in certain circumstances – being used to allow companies to be ‘stateless’ in terms of their place of tax residence," the country said in a press release on Tuesday.

Subsidiary Apple Operations International has come under scrutiny in recent months for exploiting the loophole, as it has received billions of dollars between 2009 and 2011, but paid no taxes to any government. According to Apple’s own statement on the matter, AOI is incorporated in Ireland and therefore not a tax resident in the United States, but as it is controlled via the U.S., it does not meet the tax resident requirements in Ireland either.

According to Reuters, requiring companies to declare a tax residence will have little overall impact on Apple, as Ireland will allow companies to choose any country as a tax residence, including zero tax jurisdictions.

A spokesman for the Department of Finance declined to explain the change but denied it was due to U.S. pressure.

He added that companies could still nominate any country they liked as their tax residence, including zero tax jurisdictions such as Bermuda - a provision that tax advisers said was unusual internationally.

Earlier this year, Apple CEO Tim Cook testified in front of the U.S. Senate Permanent Subcommittee of Investigation following an accusation that the company avoided paying billions in federal taxes via “extensive tax-avoidance strategies.”

During the hearing, Tim Cook insisted that Apple pays all of its taxes. "We pay all of the taxes we owe, every single dollar," he said. After an extensive investigation of Apple’s finances and disclosure practices concluded in September, the U.S. Securities and Exchange Commission opted not to take any action against the company.

Apple has said that it plans to use its extensive foreign cash pile to invest abroad, creating additional Apple Stores overseas, expanding its iTunes Store, and boosting its international marketing.

Top Rated Comments

CplBadboy Avatar
121 months ago
A multi billion dollar corporation should be paying ****in tax. Simple as that. Sheeple should understand they are taking the piss and realise that. We all pay tax and we get ripped off so why shouldnt Apple pay there dues? I like Apple dont get me wrong but when Im paying considerable taxes on my wages and they arent then its time to act. Its a question of fairness. Dont let fanboyism get in the road of that.
Score: 28 Votes (Like | Disagree)
The Mercurian Avatar
121 months ago
Our nation is broke so "lets tax Apple Inc."
Should not all companies pay tax ?
Fact is Apple paid only 2% tax on 100million. The Irish corporate tax rate is 12.5% - lower than most of Europe. Apple, Amazon, Starbucks, Google and others have manipulated international laws to avoid tax. This needs to stop.

Ireland stepping up to the plate. What are the rest of the countries doing ?
Score: 23 Votes (Like | Disagree)
NutsNGum Avatar
121 months ago
It could backfire. Ireland needs all the jobs it can get. While it might close some loopholes, they should be careful not to penalize companies with significant operations there.

It's not penalising to prevent large corporations taking the piss out of the tax system.
Score: 15 Votes (Like | Disagree)
NOTmacbookpro13 Avatar
121 months ago
Our nation is broke so "lets tax Apple Inc."

Are you for real? We have the lowest corporation tax rate in Europe. Don't add to a discussion when you don't know anything about it.
Score: 13 Votes (Like | Disagree)
Rocco83 Avatar
121 months ago
I really wish Apple has to start paying all that tax to the US and even has to pay back taxes to the US so our government can use it for wage increases for president, congress, and house members as they are doing such a wonderful job.

What money is left over can go into a fund the government can use to help create more technology and software to intrude into its citizen's lives.

I know that money would be much better in the hands of our government rather than waiting in the banks of a company like Apple that may very well be used to pay for the R&D of a revolutionary new piece of tech.
Score: 11 Votes (Like | Disagree)
bbeagle Avatar
121 months ago
And what about Google's avoidance of UK tax by "negotiating" advertising deals in the UK and "completing" the sales in Eire?
Google, Microsoft, Facebook, Oracle, Adobe .... all use the same scheme in Ireland as Apple does to avoid taxes.
Score: 11 Votes (Like | Disagree)

Popular Stories

dewey airtag

Report Highlights Danger of Using AirTags for Tracking Dogs

Monday January 30, 2023 1:45 pm PST by
AirTags may be a convenient way for tracking dogs that might get off leash or otherwise lost, but there are dangers associated with the practice, as outlined by a report from The Wall Street Journal. At 1.26 inches in diameter, AirTags are able to fit easily on a dog's collar, but that size also makes the tracking devices small enough to swallow, at least for a medium to large-sized dog, and ...
Multi Display CarPlay 1

Apple Launching All-New CarPlay Experience Later This Year With These 5 Features

Sunday January 29, 2023 10:15 am PST by
In June 2022, Apple previewed the next generation of CarPlay, promising deeper integration with vehicle functions like A/C and FM radio, support for multiple displays across the dashboard, personalization options, and more. Apple says the first vehicles with support for the next-generation CarPlay experience will be announced in late 2023, with committed automakers including Acura, Audi,...
General iOS 16 Feature Yellow

Five New iOS Features Coming to Your iPhone Later This Year

Tuesday January 31, 2023 11:58 am PST by
Apple has previously announced several upcoming iOS features that are expected to be added to the iPhone this year. Some of the features could be introduced with iOS 16.4, which should enter beta testing soon, while others will arrive later in the year. Below, we have recapped five new iOS features that are expected to launch in 2023, such as an Apple Pay Later financing option for purchases ...
maxresdefault

Kuo: Apple to Release Foldable iPad With Carbon Fiber Kickstand in 2024

Monday January 30, 2023 12:55 am PST by
Apple will launch a foldable iPad with a carbon fiber kickstand sometime next year, according to analyst Ming-Chi Kuo. Subscribe to the MacRumors YouTube channel for more videos. In a series of tweets, Kuo said he expects an "all-new design foldable iPad" to be the next big product launch in the iPad lineup, with no other major iPad releases in the next nine to 12 months. The analyst said he...
Apple Silicon Teal Feature

The Next Big Apple Silicon Device May Not Be a Mac or iPad

Wednesday February 1, 2023 3:57 am PST by
Apple's next device with an Apple silicon chip may not be a Mac or an iPad, but rather an advanced external display, according to recent reports. The display, which is rumored to arrive this year, is expected to sit somewhere between the $1,599 Studio Display and the $4,999 Pro Display XDR – but more exact information about the device's positioning and price point is as yet unknown. While ...
MKBHD HomePod 2 White Ring Stain

New HomePod Can Still Stain Some Wooden Surfaces

Tuesday January 31, 2023 8:29 am PST by
When the original HomePod launched in 2018, it was discovered that the speaker can leave white rings on some wooden surfaces. Now, well-known YouTuber Marques Brownlee has confirmed that the issue persists to a lesser extent with the new HomePod. In a side-by-side test, he showed that the white second-generation HomePod left a white ring on the wooden surface that he placed the speaker on,...
tim cook data privacy day

Apple Violated U.S. Labor Laws With Anti-Leak Email

Monday January 30, 2023 3:43 pm PST by
Apple violated United States labor laws when it sent out an email warning employees about leaking confidential information about the company, the National Labor Relations Board (NLRB) said today in a ruling shared by Bloomberg. Rules that Apple has established around leaks "tend to interfere with, restrain or coerce employees" from the exercise of their rights under the National Labor...