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European Commission Made 'Fundamental Errors' in Irish Tax Ruling, Says Apple
Apple has claimed that the European Commission made "fundamental errors" when it ruled last year that the company owed Ireland 13 billion euros ($13.7 billion) in unpaid taxes plus interest.
Apple appealed the commission's decision in December, but on Monday the company published a piece in the Official Journal of the European Union detailing 14 pleas in law to support its action, according to The Irish Times.
The European Commission argues that Irish revenue commissioners gave Apple unfair advantage between 1991 and 2007 by allowing the company to move income from the European market through two "non-resident" head office subsidiaries based in Ireland.
Apple and the Irish government, which has also appealed the commission's decision, argue that the bulk of those profits are due in the U.S.
"The Commission made fundamental errors by failing to recognize that the applicants' profit-driving activities, in particular the development and commercialization of the intellectual property (Apple IP), were controlled and managed in the United States," Apple said, according to the Official Journal. "The profits from those activities are attributable to the United States, not Ireland."Apple maintained that the commission had "failed to recognize that the Irish branches carried out only routine functions and were not involved in the development and commercialization of Apple IP, which drove profits".
Cupertino also said that the commission failed to conduct a diligent and impartial investigation, and "exceeded its competence" as it relates to the Treaty on the Functioning of the European Union, by "attempting to redesign Ireland's corporate tax system".
Apple CEO Tim Cook has called the EC's ruling "total political crap" and described the lower end 0.005% tax rate Apple is accused of paying as a "false number". The Apple CEO believes that the decision will be reversed.
Appeals by Apple and the Irish government have been made to the European Union's General Court, where proceedings may take up to two years to complete, after which the case is likely to go all the way to the European Court of Justice.
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.
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32 months ago
Apple CEO Tim Cook has called the EC's ruling "total political crap ('https://www.macrumors.com/2016/09/01/tim-cook-tax-total-political-crap/')" and described the lower end 0.005% tax rate Apple is accused of paying as a "false number".
Instead of trying to cloud the waters Tim, how about coming clean on what tax rate you actually pay?
No, didn't think so...
EDIT: For clarification, when I say "you" I am referring to Apple. Not Tims personal tax rate.
32 months ago
Apple is happy to benefit from them though. Anything not to pay it's fair share in taxes in USA.
What a lovely company... such integrity.
What a lovely company... such integrity.
32 months ago
Don't Apple pay their fair share of taxes in the US?
I was under the impression that everything it sold in the US was taxed there. Everything sold abroad was taxed abroad - unless Apple brings its offshore cash to the US.
Not trying to start an argument - honestly asking if there's something I've missed.
From what I have worked out in my small brain.
Everything sold in U.S. is taxed in US..
Everything sold abroad (E.U.) is put through an IP ringer so that's it's not taxed in any country apart from Ireland. It's taxed there at 0.005% or another criminally low number thanks to the head office being there in name only.
Apple are saying that the cash offshore is supposed to be taxed at the very high U.S. tax rate if and when they bring it home so in theory they are paying whatever the U.S. corporation tax is.. Just not whilst the cash is outside of the U.S.
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This ruling is intended to extract the billions from the US Treasury and transfer it to the EU.
Bollox.Just think how much cash the U.S. treasury would be bringing in if Apple were forced to bring that cash home?
And for any who say, "The government shouldn't be trusted with taxes, they just waste the cash". Apple are doing NOTHING with it.. That could be repairing roads, bridges, providing schools, hospitals etc...
32 months ago
"You publish your tax return first, please."
Is the other poster
a. A huge tech corporation with dodgy tax dealings in Ireland?
b. Currently under investigation by the EU?
No? Didn't think so..
I'd also like to see Tim come clean on Apple's tax in Ireland and around the world for that matter.
32 months ago
If the profits were attibuted by Apple to the U.S. and accordingly taxed in the U.S. I side with Apple on this point. If the profits were originally attributed to Ireland it's a different story but it would be like Apple telling U.S. tax autorithies they need to get taxed in Ireland and EU authorities they need to get taxed in the U.S...
32 months ago
I'm happy to see Apple being called out on this sort of thing...but I don't see why Ireland should be the ones getting a $13b bonus when they are effectively co-conspirators!
Back taxes should be paid across the countries where Apple derived the income. "Profit-driving activities" is not R&D, it's selling the results of that R&D. You can do all the US-based R&D you want, it's selling those products to customers all around the world that results in a profit.
Back taxes should be paid across the countries where Apple derived the income. "Profit-driving activities" is not R&D, it's selling the results of that R&D. You can do all the US-based R&D you want, it's selling those products to customers all around the world that results in a profit.
32 months ago
What are the "routine functions" that are carried out in Ireland? Isn't this where all of Apple's EU sales are derived? - i.e. it's a shop, and if so, shouldn't the tax rate be equivalent to any other shop trading in Ireland?
I should perhaps add: I don't know if the above scheme would result in more or less tax than Apple currently pays in Ireland. Does anyone here have any information on that?
I should perhaps add: I don't know if the above scheme would result in more or less tax than Apple currently pays in Ireland. Does anyone here have any information on that?
32 months ago
Instead of trying to cloud the waters Tim, how about coming clean on what tax rate you actually pay?
No, didn't think so...
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If I have to pay my taxes then so do you Apple.
You realize that there is no debate that Apple paid their taxes, Right? Nobody is questioning that they paid their taxes... except idiots who don't read past headlines and subheads.
32 months ago
You publish your tax return first, please.
I'm not a public company and I was referring to Apples Tax rate, not Tims although I could have made it clear.Nor do I do tax 'avoidance/reduction (tomato/tomato)' schemes
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