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

Apple-EUA 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.

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45 months ago
I would like to know which MR members pay more than they "technically owe."

Apple, just like any other intelligent entity is entitled to take all the legal steps they can to avoid paying taxes. Nobody, no matter how rich or poor is just going to give up money to the governments that they don't legally owe.

Even Warren Buffett thinks that Billionaires should be paying much more taxes, but until he HAS TO, he is not going to just donate to government.
Rating: 6 Votes
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45 months ago
Every person or corporation is fully entitled to utilize every legal tax avoidance scheme available.
Rating: 6 Votes
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45 months ago
The laws clearly need to change so that Apple pays a full 30% tax just like the amount it taxes developers. Profit shifting, tax avoidance and aggressive tax minimization seems part of Apple's business model. Apple doesn't abide by the spirit of laws, and it won't change, so governments around the world will have to change to recoup lost tax.

All that missing tax, that Apple doesn't pay, means Apple is socializing its company structure worldwide, thereby creating negative funding outcomes for countries where Apple reduces tax. That's the reality of Apple paying less than 2% tax -- citizens, even those who don't buy Apple, are financially supporting Apple's corporate operations, this includes some of the poorest in the world which are supporting one of the wealthiest companies. That needs to end, and end fast.
Rating: 4 Votes
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45 months ago
You know, we could always institute business-friendly corporate tax rates and force governments to run a balanced budget for their pet projects, but NAHHH, let's just punish success and reward lethargy.
Rating: 4 Votes
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45 months ago

You know, we could always institute business-friendly corporate tax rates and force governments to run a balanced budget for their pet projects, but NAHHH, let's just punish success and reward lethargy.

Punish success how? The tax rates are really clear cut. "Make X amount, pay Y percentage of that to the government"

Should Pokemon Go, the creator of Flappy Bird, and the makers of Candy Crush, no longer pay 30% to Apple? After all that's Apple punishing their success. They worked hard so Apple should take a lower percentage.
Rating: 3 Votes
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45 months ago

You know, we could always institute business-friendly corporate tax rates and force governments to run a balanced budget for their pet projects, but NAHHH, let's just punish success and reward lethargy.


Way to skip out on the important details. Like Apple having multiple off shore shell companies that pay pennies for the ownership of Apple patents invented in USA. Meanwhile Apple pays royalties to those shell companies, thus shifting profits to the shell companies. All technically legal and only corporations can do because normal people don't own patents.
Rating: 3 Votes
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45 months ago
Jeez, all these people whining about how they haven't successfully extorted "their cut" from Apple's productivity. Questions:

Is what Apple is doing illegal? - No.

Do you have a right to steal their stuff anyways? - No.

Does Apple have a fiduciary responsibility to maximize profits for its shareholders? - Yes


How immature. Grow up and earn your keep.
Rating: 3 Votes
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45 months ago

How long has everyone known about these accounting practices?


True true. Another thing is - the governments (in the west especially) employ people to write up the tax codes. Then - the same people who wrote the tax codes eventually end up leaving the public sector and join these massive companies - purely for the knowledge of the loopholes of the tax codes that they wrote (and presumably were passed into law by the said government).
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Yes a dog eat dog world, and the dog has a taste and a good bite for apples.


:D Good one....

Seriously though, in Ireland the government only care about the jobs. The jobs that are created by the foreign direct investment (multinational's) is all they think about. Anything they get extra in taxes is only gravy to them. Sad but true.

Unless there was some global tax rate system - brought in at the exact same time (say 01/01/2020) for all countries, then it will continue.

And remember - during the 1980's when Ireland gave that so called 'Sweetheart deal' - Apple was on its knee's. So - I am glad they were able to survive back then. Only when Apple started to generate so much money over the last decade has this suddenly became so important to the EU competition authority. France especially has a serious problem with Ireland over it. I am sure they are whispering in somebody's ear. But as the saying goes 'C'est la vie'.
Rating: 2 Votes
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45 months ago

But, if they actually ARE the largest tax payer in the world, and they are avoiding paying taxes as well, doesn't that probably make them the biggest company avoiding paying taxes in the world too?

Doesn't this reveal something about the mentality of the company?
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Cook has lied about so many things that any statement made by him should be viewed with suspicion. Why the public actually believe ANYTHING Apple executives say these days is beyond belief. Apple is effectively TWO companies; the one portrayed by their marketing and PR department, and the real Apple that is behind it. The real Apple are an exceptionally nasty company, far worse than rivals such as Microsoft or Google. Every now and then, the public get a glimpse of what Apple are really like; an unethical, deceptive company, driven by incredible greed and arrogance. It's a shame, because they weren't this way until relatively recently.


Reveals something about the mentality of every company and person in the world. No one wants to pay more tax than they have to.
Rating: 2 Votes
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45 months ago

Every person or corporation is fully entitled to utilize every legal tax avoidance scheme available.


This. It's hilarious people have no problems using any available deductions possible when doing their own taxes, yet scream bloody murder if a company (esp Apple) does the same thing.
Rating: 2 Votes
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