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 Ireland

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 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

mabaker Avatar
103 months ago
God forbid they pay taxes like the rest of us.
Score: 19 Votes (Like | Disagree)
cube Avatar
103 months ago
The EU has rules. Deal with it.
Score: 17 Votes (Like | Disagree)
emm386 Avatar
103 months ago
If you make billions abroad, you get taxed abroad. If you make billions at home, you get taxed at home.

In a reasonable manner - of course!

But a SUB-2% tax rate for one of the biggest, richest and most successful companies on the planet though is neither reasonable nor fair to your employees, who get taxed way beyond that.
Score: 15 Votes (Like | Disagree)
madsci954 Avatar
103 months ago
The EU has rules. Deal with it.
Dear EU,
This is how we deal with it.
Love,
The U.K. #Brexit
Score: 11 Votes (Like | Disagree)
rikscha Avatar
103 months ago
Dear EU,
This is how we deal with it.
Love,
The U.K. #Brexit
Yes by running away doing nothing and taking the own economy down. Great resolution!
Score: 10 Votes (Like | Disagree)
cube Avatar
103 months ago
Can the EU force a European country on deciding how the taxes should be structured? Honest question.
Some sweetheart deals can supposedly go against EU rules. This is how the investigation is going.

The EU has punished more European companies than American ones.
Score: 7 Votes (Like | Disagree)

Popular Stories

iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Just Two Months Away: Everything We Know

Monday July 15, 2024 4:44 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
iPhone SE 4 Vertical Camera Feature

iPhone SE 4 Rumored to Use Same Rear Chassis as iPhone 16

Friday July 19, 2024 7:16 am PDT by
Apple will adopt the same rear chassis manufacturing process for the iPhone SE 4 that it is using for the upcoming standard iPhone 16, claims a new rumor coming out of China. According to the Weibo-based leaker "Fixed Focus Digital," the backplate manufacturing process for the iPhone SE 4 is "exactly the same" as the standard model in Apple's upcoming iPhone 16 lineup, which is expected to...
New MacBook Pros Launching Tomorrow With These 4 New Features 2

M5 MacBook Models to Use New Compact Camera Module in 2025

Wednesday July 17, 2024 2:58 am PDT by
Apple in 2025 will take on a new compact camera module (CCM) supplier for future MacBook models powered by its next-generation M5 chip, according to Apple analyst Ming-Chi Kuo. Writing in his latest investor note on unny-opticals-2025-business-momentum-to-benefit-509819818c2a">Medium, Kuo said Apple will turn to Sunny Optical for the CCM in its M5 MacBooks. The Chinese optical lens company...
tinypod apple watch

TinyPod Turns Your Apple Watch Into an iPod

Wednesday July 17, 2024 3:18 pm PDT by
If you have an old Apple Watch and you're not sure what to do with it, a new product called TinyPod might be the answer. Priced at $79, the TinyPod is a silicone case with a built-in scroll wheel that houses the Apple Watch chassis. When an Apple Watch is placed inside the TinyPod, the click wheel on the case is able to be used to scroll through the Apple Watch interface. The feature works...
iphone 14 lineup

Cellebrite Unable to Unlock iPhones on iOS 17.4 or Later, Leak Reveals

Thursday July 18, 2024 4:18 am PDT by
Israel-based mobile forensics company Cellebrite is unable to unlock iPhones running iOS 17.4 or later, according to leaked documents verified by 404 Media. The documents provide a rare glimpse into the capabilities of the company's mobile forensics tools and highlight the ongoing security improvements in Apple's latest devices. The leaked "Cellebrite iOS Support Matrix" obtained by 404 Media...
Apple Watch Series 9

2024 Apple Watch Lineup: Key Changes We're Expecting

Tuesday July 16, 2024 7:59 am PDT by
Apple is seemingly planning a rework of the Apple Watch lineup for 2024, according to a range of reports from over the past year. Here's everything we know so far. Apple is expected to continue to offer three different Apple Watch models in five casing sizes, but the various display sizes will allegedly grow by up to 12% and the casings will get taller. Based on all of the latest rumors,...