Apple Expects Appeal of Irish Tax Ruling to Take 'Several Years' With No Impact on Near-Term Financial Results

Following the European Commission's ruling that Apple received illegal state aid from Ireland, and must pay $14.5 billion in back taxes to the country, the company has published a new FAQ that addresses potential concerns investors may have about the decision and the effect on its bottom line.

Apple-EU
Apple started out by confirming the decision is not final and that it plans to appeal. The company is "confident" the ruling "will be overturned" by courts in the European Union, but it notes the process is "likely to take several years." In the meantime, Apple does not expect any near-term impact on its financial results.

How does this decision impact Apple’s near-term financial results?
Will you take a tax charge? Does this alter your previous guidance?

We do not expect any near-term impact on our financial results nor a restatement of previous results from this decision. We have previously accrued U.S. taxes related to the income in question. The tax rate guidance for Apple’s fourth fiscal quarter that we provided on July 26, 2016 does not change as a result of this decision.

Apple added that it does not currently expect the decision to have an impact on its tax rate or cash balance going forward, but the company anticipates it will place an unspecified amount of cash in an escrow account. Apple expects the amount will be reported as restricted cash on its balance sheet.

The European Commission's ruling followed a three-year inquiry into Apple's tax arrangements in Ireland, where it paid between 0.005% and 1% in taxes from 2003 through 2014, compared to the country's headline 12.5% corporate tax rate. Apple insists it "follows the law and pays all of the taxes" it owes.

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

WiiDSmoker Avatar
70 months ago
Pay your ****ing taxes. I pay mine.
Score: 45 Votes (Like | Disagree)
draugminaion Avatar
70 months ago
I don't understand EU tax law. It seems Ireland's own laws says what Apple is doing is legal.
It's not EU tax law, it's EU competition law.
EU competition law forbids special deals that amount to state aid to companies.
The state aid happened to have taken the form of reduced taxes.
Score: 16 Votes (Like | Disagree)
apolloa Avatar
70 months ago
As I understand the money will have to be collected soon, along its interest which makes it a lot more, and then it sits in a fund that cannot be touched by Apple it Ireland or anyone else whilst they go through the appeals process.

Personally I think Apple firstly being almost fraudulent in its tax payments dodging, and then posting a letter to Europe claiming they are innocent and Ireland was nothing till they showed up, will have lost them some sales.
We shall see though. You don't bite the hand the feeds you which is EXACTLY what Tim Cook has done today by threatening any further EU investment now because of their tax dodging being exposed. That arrogant American attitude doesn't win over European consumers Tim.
Score: 15 Votes (Like | Disagree)
MacLawyer Avatar
70 months ago
I don't understand EU tax law. It seems Ireland's own laws say what Apple is doing is legal.
Score: 12 Votes (Like | Disagree)
apolloa Avatar
70 months ago
Except the EU itself is hardly popular in the EU itself right now, and it could also come across as "why the hell is the EU interfering in the tax laws of a member state? Shouldn't they have the right to do whatever they want? A lot of people feel the EU is interfering too much. So it could go either way really.
You have severely underestimated the attitudes of Europeans towards giant corporations, this is actually a good thing. The EU provides a hell of a lot better consumer laws then America does and no one is complaining about that!
Score: 9 Votes (Like | Disagree)
tentales Avatar
70 months ago
Just curious... how much cash do they have stored in the bank again?
Let's put it this way, the tax demand is about 6% of their cash on hand. But they'll fight it tooth and nail for years, even if they'll have to spend those 6% on tax attorney fees.
Score: 8 Votes (Like | Disagree)

Popular Stories

AirPods Pro Gen 3 Mock Feature Red

AirPods Pro 2 Could Start a New Accessory Ecosystem

Friday January 14, 2022 2:34 am PST by
Apple's second-generation AirPods Pro could arrive alongside a new series of accessories, recent leaked images suggest. Alleged leaked photos of the next-generation AirPods Pro obtained by MacRumors showed a charging case with a metal loop on the side for attaching a strap. Apple has not used this design for any of its other AirPod models and it is unclear why it would be added in this...
netflix2

Netflix Again Raises Prices for All Plans, 4K Streaming Now $20 Per Month

Friday January 14, 2022 12:46 pm PST by
Netflix today updated the prices for its streaming plans, and all of its offerings are now more expensive. The Basic plan is now priced at $9.99 per month, the Standard plan is priced at $15.49 per month, and the Premium plan is priced at $19.99 per month. The Basic plan is $1 more expensive, up from $8.99 per month. This plan allows users to watch on just one screen at a time, and it limits ...
iPhone 14 Mock pill and hole 16x9 120hz

Analyst: All iPhone 14 Models to Feature 120Hz Displays, 6GB of RAM, and More

Friday January 14, 2022 7:02 am PST by
Apple is rumored to announce four new iPhone 14 models in September, and ahead of time, analyst Jeff Pu has outlined his expectations for the devices. In a research note with Haitong International Securities, obtained by MacRumors, Pu claimed that all iPhone 14 models will feature ProMotion displays, compared to only Pro models currently. ProMotion enables a variable refresh rate up to 120Hz ...
Unlikely Products 2022 Feature

Six Rumored Apple Products You're Unlikely to See This Year

Saturday January 15, 2022 2:06 pm PST by
Much has been said about what consumers could see from Apple in 2022, but the company is also working on a handful of rumored products that aren't expected to be unveiled for at least another 12 months, and in some cases a lot longer. Of course, that's assuming they get released at all. Apple works on many potential products some of which ultimately never see the light of day. With that in...
top stories 20220115

Top Stories: iPhone 14 Pro Rumors, iCloud Private Relay Controversy, iOS 15.2.1 Released, and More

Saturday January 15, 2022 6:00 am PST by
Hole-punch? Pill? Hole-punch and pill? Rumors about what the front camera system on the iPhone 14 Pro will look like are evolving rapidly, and it now appears we might be getting a novel but potentially controversial design later this year. Other major stories this week included some confusion and controversy about iCloud Private Relay being disabled for some T-Mobile customers, increasing...
iPhone 14 Mock pill and hole thumb

ProMotion Now Expected to Remain Exclusive to iPhone 14 Pro Models, Not Expand to Entire Lineup

Sunday January 16, 2022 8:56 am PST by
Continuing the tradition set with the iPhone 13 Pro, only the highest-end iPhone 14 models will feature Apple's ProMotion display technology, according to a respected display analyst. Ross Young, who on multiple occasions has detailed accurate information about Apple's future products, said in a tweet that ProMotion will not be expanded to the entire iPhone 14 lineup and will remain...
iPad Pro Big Ol Logo Orange

Next iPad Pro Might Feature Large Glass Apple Logo to Allow Wireless Charging

Friday January 14, 2022 10:44 am PST by
Bloomberg's Mark Gurman and Debby Wu last year reported that Apple had tested a new iPad Pro with a glass back for wireless charging capabilities. In a recent edition of his newsletter, Gurman said he expects the new iPad Pro to be released in 2022. While the new iPad Pro is still on track to feature wireless charging, 9to5Mac's Filipe Espósito today reported that Apple may have ultimately...
ipad air 4 video

New iPad Air Rumored to Launch This Spring With A15 Chip, 5G, Center Stage Camera, and More

Saturday January 15, 2022 8:05 pm PST by
Apple is planning to release a fifth-generation iPad Air with similar features as the sixth-generation iPad mini, including an A15 Bionic chip, 12-megapixel Ultra Wide front camera with Center Stage support, 5G for cellular models, and Quad-LED True Tone flash, according to Japanese blog Mac Otakara. Citing reliables sources in China, the report claims that the new iPad Air could be...