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

Apple-EUApple 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.

Bloomberg-Apple-Tax-Chart

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 thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Top Rated Comments

SoAnyway Avatar
79 months ago
Why does anyone defend a multi-billion dollar company from paying their taxes considering how much they benefit from the rest of society?

I'll never ever understand the conservative mindset, it's rather nutty.
Score: 65 Votes (Like | Disagree)
sransari Avatar
79 months ago
Why does anyone defend a multi-billion dollar company from paying their taxes considering how much they benefit from the rest of society?

I'll never ever understand the conservative mindset, it's rather nutty.
What I'll never understand is why it is considered greedy to want to keep money that you've earned, but it's NOT considered greedy for someone to take someone else's money that the earner has earned and the taker hasn't.
Score: 41 Votes (Like | Disagree)
justperry Avatar
79 months ago
The EU should really stick to what it does well and keep its hands off countries tax policies.
No, Apple should pay fair taxes in countries where they operate, now they don't.
Score: 40 Votes (Like | Disagree)
apolloa Avatar
79 months ago
The EU should really stick to what it does well and keep its hands off countries tax policies.
So the European Commission should not do its job and investigate issues in European countries? Ok..
Score: 29 Votes (Like | Disagree)
Gasu E. Avatar
79 months ago
The EU should really stick to what it does well and keep its hands off countries tax policies.
If countries join the EU, which is a free-trade zone, the EU has an interest in establishing consistent tax policies. Due to membership in the EU, a country such as Ireland is protected from having tariffs imposed on it by other EU countries; the EU gets those regulatory rights, in return. It's only fair and reasonable. If Ireland doesn't like it, they can leave the EU.
Score: 26 Votes (Like | Disagree)
d0minick Avatar
79 months ago
If they are breaking the law, make them pay. If they aren't, then fix the damn tax laws so they can bring the money home.
Score: 24 Votes (Like | Disagree)

Popular Stories

intel vs m1 max chip purple

Benchmarks Confirm Intel's Latest Core i9 Chip Outperforms Apple's M1 Max With Several Caveats

Wednesday January 26, 2022 8:56 am PST by
Benchmark results have started to surface for MSI's new GE76 Raider, one of the first laptops to be powered by Intel's new 12th-generation Core i9 processor. Intel previously said that its new high-end Core i9 processor is faster than Apple's M1 Max chip in the 16-inch MacBook Pro and, as noted by Macworld, early Geekbench 5 results do appear to confirm this claim, but there are several...
General Dropbox Feature

macOS 12.3 Will Include Cloud Storage Changes Affecting Dropbox and OneDrive

Tuesday January 25, 2022 3:31 pm PST by
Dropbox today announced that users who update to macOS 12.3 once that software version becomes available may temporarily encounter issues with opening online-only files in some third-party apps on their Mac. In a support document and an email to customers, Dropbox said it is actively working on full support for online-only files on macOS 12.3 and will begin rolling out an updated version of...
Apple Watch Red Yellow Green Feature 1

Apple Launches Black Unity Braided Solo Loop With 'Unity Lights' Watch Face

Wednesday January 26, 2022 6:05 am PST by
Apple today announced the Black Unity Braided Solo Loop for the Apple Watch, as well as a new downloadable watch face, to celebrate Black History Month. Following the launch of the limited edition Black Unity Apple Watch Series 6 and Sport Band in 2021, Apple today launched the Black Unity Braided Solo Loop as part of its celebrations for Black History Month this year.Apple is launching a...
ios 15

Apple Releases iOS 15.3 and iPadOS 15.3 With Fix for Safari Bug That Leaks Browsing Activity

Wednesday January 26, 2022 10:00 am PST by
Apple today released iOS 15.3 and iPadOS 15.3, the third major updates to the iOS and iPadOS 15 operating systems that were released in September 2021. iOS and iPadOS 15.3 come almost two weeks after the release of iOS and iPadOS 15.2.1, minor bug fix updates. The iOS 15.3 and iPadOS 15.3 updates can be downloaded for free and the software is available on all eligible devices over-the-air in ...
iOS 15

Everything New in iOS 15.4 and iPadOS 15.4: Face ID With a Mask, Emojis, Apple Card Widget, Universal Control and More

Thursday January 27, 2022 12:08 pm PST by
Apple today seeded the first betas of iOS 15.4, iPadOS 15.4 to developers for testing purposes, adding a slew of new features to the latest iOS operating systems. iOS 15.4 is the biggest update that we've had to iOS 15 to date, and it brings Universal Control, Face ID with a mask, new emojis, and tons more. Face ID With a Mask With iOS 15.4, there is now an option to unlock your iPhone...
mobeewave

Upcoming iOS Update Will Allow iPhones to Accept Credit Cards Directly Using NFC

Wednesday January 26, 2022 6:00 pm PST by
Apple is working on a new payments service that will allow iPhones to accept payments directly on device with no additional hardware, reports Bloomberg. Right now, iPhones can accept credit cards with add-ons like the Square Reader, but Apple's new technology will eliminate the need for a third-party product. Individuals and small businesses will be able to accept payments with the tap of a...
macOS Monterey on MBP Feature

Apple Releases macOS Monterey 12.2 With Safari Vulnerability Fix

Wednesday January 26, 2022 10:19 am PST by
Apple today released macOS Monterey 12.2, the second major update to the macOS Monterey update that launched in October. macOS Monterey 12.2 comes over a month after the release of the 12.1 update, which brought SharePlay support. The ‌‌‌macOS Monterey 12.2‌‌ update can be downloaded on all eligible Macs using the Software Update section of System Preferences. Apple has also...