Irish minister says EU probe into Apple tax dodges should reach finding by end of 2015
The Irish government has an "indication" the European Commission will decide whether its tax arrangements with Apple violated state aid rules by the end of the year, it was revealed on Monday.
Regardless of which way they go, the findings won't hurt Ireland, Finance Minister Michael Noonan told news agencies such as Bloomberg. The minister claimed that any findings against the country would be "based on very thin legal grounds" and challenged in the European Court of Justice.
Last year, however, the Commission issued a preliminary finding that Apple was receiving unfair tax breaks in exchange for putting jobs in the country. In 2013 Apple admitted that it had been paying an effective tax rate of less than 2 percent for the previous decade -- European Union regulations don't allow governments to favor individual corporations with special subsidies.
A number of businesses, including Apple, have exploited loopholes in Irish tax law to pay minimal taxes on billions in revenue funneled there from much larger markets around the world. Apple has consistently maintained that it's simply following the law, but that legality is currently in a shakier position, and the Irish government is working to close at least some of those loopholes.
In terms of jobs, Apple runs a variety of operations out of the Irish city of Cork, including administration, distribution, and manufacturing. In May, news emerged that Apple is considering a major expansion of local manufacturing.
If Apple is required to pay a standard tax rate of 12.5 percent, it could potentially reduce Apple's annual earnings by just under 10 percent unless the company finds another tax haven to funnel revenue through.
Regardless of which way they go, the findings won't hurt Ireland, Finance Minister Michael Noonan told news agencies such as Bloomberg. The minister claimed that any findings against the country would be "based on very thin legal grounds" and challenged in the European Court of Justice.
Last year, however, the Commission issued a preliminary finding that Apple was receiving unfair tax breaks in exchange for putting jobs in the country. In 2013 Apple admitted that it had been paying an effective tax rate of less than 2 percent for the previous decade -- European Union regulations don't allow governments to favor individual corporations with special subsidies.
A number of businesses, including Apple, have exploited loopholes in Irish tax law to pay minimal taxes on billions in revenue funneled there from much larger markets around the world. Apple has consistently maintained that it's simply following the law, but that legality is currently in a shakier position, and the Irish government is working to close at least some of those loopholes.
In terms of jobs, Apple runs a variety of operations out of the Irish city of Cork, including administration, distribution, and manufacturing. In May, news emerged that Apple is considering a major expansion of local manufacturing.
If Apple is required to pay a standard tax rate of 12.5 percent, it could potentially reduce Apple's annual earnings by just under 10 percent unless the company finds another tax haven to funnel revenue through.
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and the likes of Microsoft, Google, Adobe etc will be looking with a great deal of interest.
Then the Atlantic version of the TTIP will make it all nice and cozy when the US decides to tax all companies that do any sort of business with the USA even if they have paid all their tax due in their country of domicile just to get even. (my impression of it anyway)
Excellent point.
Mars is more in vogue.
total and utter bullshit.
Apple will make $50 billion in profits for FY2015.
Are telling me they will charge Apple $5 billion in taxes?
Actually, worst case scenario for Apple is they would have to pay a $19 billion if the EU probe found Ireland broke EU rules. Ireland is going to fight the EU if this happens, so this will end up being drawn out in the European Court of Justice for years.
And if it no longer benefits Ireland they should abandon the Euro and the EU at the end of whatever legal wrangling occurs.
And if they or anyone else owe taxes, as Im sure they do, than they should pay it just like the rest of us.
Thats just a random bullshit number EU is spewing out. No way on earth will they get even $1 billion from Apple.
Worse case scenerio is a moon sized astroid hitting earth.
I believe the $19 billion number is based on back taxes Apple would owe from the previous 10 years. That's of course if Ireland were to lose and they would have to recoup the taxes from Apple. Regardless, this will take years to be decided if Ireland loses and they fight it in court.
And I'm part Irish.
Apple abode by your laws, however poorly written.
In other words, Apple has done nothing wrong.
You may not like that you're not making as much off them as you'd want, but that's not Apples fault.
You can either rewrite your laws to avoid confusion in the future or shut up.
And no, rewriting your laws don't give you the right to charge backtracked that "would have been owed" if this law was in place then. You can only start fresh and move forward.
Why? Because Apple abode by your laws and did everything they were supposed to do. Legally.
The stupidity astounds.
Mars is more in vogue.
Has Elon Musk mentioned what his tax policy will be if he does indeed become Supreme Martian Emperor?
These loopholes need to be closed for EVERYONE, not just Apple.
And if they or anyone else owe taxes, as Im sure they do, than they should pay it just like the rest of us.
You do understand that the taxes that were owed under the law were paid. The question is if the law that set the taxes was "allowable" under EU rules.
It is not a question of owing taxes at the moment, but the legality of the law that set the tax rates.
No, Apple's earnings assume paying US taxes on international profits (less international taxes).
The only impact is that cash allocated for paying taxes when profits are repatriated partially goes to paying Irish taxes.
Putting the word "Dodges" in the headline is dishonest, and tells us the writer is a leftist idiot who can't keep his ignorant assed socialist politics from bleeding over.
The editor should have caught this.
Shame on AI.
This is why I take anything you write with a grain of salt. Still not as bad as mac rumors tho.
Those tax loopholes that several posters mention are something else entirely and actively exploited by not only Apple (over and above the private Irish deal) but also by Google, Microsoft, GE, and hundreds of other multinationals. IMHO those do need to be deal with too in fairness to the millions of individual taxpayers who pay significantly more percentage-wise.
Yep, Apple abided by the laws in that abode.