Apple-Ireland tax case


'Apple-Ireland tax case' Articles Page 2

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

A 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. Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in

EU Competition Chief on Apple Tax Probe: 'Don't Hold Your Breath'

A decision in the European Commission's probe of Apple's tax affairs in Ireland may not be reached soon, according to EU competition chief Margrethe Vestager (via Bloomberg).“Don’t hold your breath,” she told reporters in Brussels on Monday about the timing of decisions targeting Apple and online shopping giant Amazon.com Inc, whose tax affairs in Luxembourg are also under intense scrutiny. “I’m just warning you.”Apple is one of several multinational corporations, alongside Amazon, McDonald's, Starbucks, and others, that have been targeted for possible corporate tax avoidance in Europe. Brussels launched the probe in June 2014, and it formally accused the iPhone maker of receiving illegal state aid from Ireland three months later. If Apple's $64.1 billion in profits generated from 2004 to 2012 are subjected to a 12.5% tax rate, compared to its current foreign tax rate of about 1.8%, the company could owe more than $8 billion in back taxes. Apple continues to deny any wrongdoing, and vows to appeal any decision that goes against the company. Apple operates multiple subsidiaries in Ireland to pay significantly less tax outside of the U.S., where it earns up to 60% of its revenue. A decision in the tax probe was originally expected in late 2015, but the European Commission's request for additional information has pushed the investigation into 2016. 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

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

Apple 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. 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

Apple to Create 1,000 New Jobs in Ireland Amid Tax Probe

Apple plans to hire an additional 1,000 employees at its Cork offices in Ireland, a country where the iPhone maker shelters multi-billion-dollar profits from corporate taxes in the United States, according to Reuters. Apple's offices in Cork, Ireland Ireland's main foreign investment agency, the IDA, said Apple was to add 1,000 jobs to its office in Cork by mid-2017 from 5,000 at present. It said the company had also added 1,000 jobs in the past year.In September 2014, the European Commission accused Apple of receiving illegal state aid from Ireland in return for maintaining jobs. A decision in the investigation is due after Christmas, according to Ireland's finance minister Michael Noonan. Apple’s Tim Cook says Cork operations won't be affected by EC tax investigation outcome. Full interview on 6.1 news https://t.co/sdY8mbdMey— RTÉ News (@rtenews) November 11, 2015 Apple has paid a corporate tax rate of about 2.5% in Ireland on $109 billion in profits over the past five years, far less than an average 12.5% paid by many other companies in the country. The U.S. has an average corporate tax rate of about 15% to

European Union Accuses Ireland of Giving Apple Illegal State Aid with Tax Deals

The European Commission today announced the results of its formal investigation into Apple's tax arrangements in Ireland, accusing the company of receiving illegal state aid from the country, reports The Wall Street Journal. In its findings, the regulatory body stated that deals between Apple and Ireland struck in 1991 and 2007 helped Irish authorities "confer a selective advantage upon Apple" that resulted in a lowering of its tax liability. The Commission also added that Apple's increase in sales for its business in Ireland appear to be inconsistent when related to comparable operating costs that would come with growth. Furthermore, the Commission notes that there was a reported increase in "sales income" by 415%, but states that most of the profit-generating work was done elsewhere. Accordingly, the Commission's of the opinion that through those rulings the Irish authorities confer an advantage on Apple. That advantage is obtained every year and on-going, when the annual tax liability is agreed upon by the tax authorities in view of that ruling. Apple's tax policies have been questioned on numerous occasions throughout the past few years, as the company is said to utilize multiple subsidiary companies located in the Irish city of Cork to move money around without significant tax penalties. This in due in part to an exemption in the region's law, which allows companies that are managed abroad but located in Ireland to be exempt from taxes. CEO Tim Cook defended the company's tax practices in 2013, calling for a tax reform and simplified corporate tax policies along

Ireland May End Apple Tax Residency Loophole

Ireland may shut down a tax loophole that allowed Apple to avoid declaring itself a tax resident in any country, reports The Street. Apple, which currently has multiple subsidiary companies in the Irish city of Cork (Apple Operations International (AOI) Apple Operations Europe, Apple Operations, Apple Sales International and Apple Distribution International), is able to move money around the world without tax penalties because companies managed and controlled abroad but located in Ireland are not subjected to taxes."The second measure to be included in the Finance Bill is a change to our company residence rules aimed at eliminating mismatches – that can exist between tax treaty partners in certain circumstances – being used to allow companies to be ‘stateless’ in terms of their place of tax residence," the country said in a press release on Tuesday.Subsidiary Apple Operations International has come under scrutiny in recent months for exploiting the loophole, as it has received billions of dollars between 2009 and 2011, but paid no taxes to any government. According to Apple’s own statement on the matter, AOI is incorporated in Ireland and therefore not a tax resident in the United States, but as it is controlled via the U.S., it does not meet the tax resident requirements in Ireland either. According to Reuters, requiring companies to declare a tax residence will have little overall impact on Apple, as Ireland will allow companies to choose any country as a tax residence, including zero tax jurisdictions.A spokesman for the Department of Finance declined to explain