Apple could owe over $8 billion in European taxes, new estimate indicates
Apple could owe in excess of $8 billion in back taxes after the conclusion of a European Commission investigation into its Irish tax dodges, a new estimate suggests.
Apple pays about 1.8 percent in taxes on the revenue it generates outside the U.S., not even the 2.5 percent figure normally cited, according to Bloomberg Intelligence. If the Commission finds against Apple, the company could end up paying 12.5 percent on the $64.1 billion in profits it took in between 2004 and 2012.
The Commission has been investigating a collection of multinational corporations and European governments, accusing the latter of breaking rules against state aid by offering special tax incentives to the multinationals. A recent ruling against Belgium will see a group of 35 companies pay back $765 million.
Until recently Ireland was infamous for tax loopholes allowing companies like Apple to funnel billions in revenue from other countries yet avoid paying normal local or foreign taxes. The Irish government is working to close some of those loopholes, but could still face reprimands from the Commission, which has been investigating the country since 2014.
A ruling was recently delayed and now isn't expected to be issued until at least March.
Apple CEO Tim Cook has repeatedly insisted that his company follows the law and pays everything it owes. In a 60 Minutes interview the executive complained about U.S. politicians scrutinizing Apple's tax dodges, calling the allegations "total political crap."
Apple pays about 1.8 percent in taxes on the revenue it generates outside the U.S., not even the 2.5 percent figure normally cited, according to Bloomberg Intelligence. If the Commission finds against Apple, the company could end up paying 12.5 percent on the $64.1 billion in profits it took in between 2004 and 2012.
The Commission has been investigating a collection of multinational corporations and European governments, accusing the latter of breaking rules against state aid by offering special tax incentives to the multinationals. A recent ruling against Belgium will see a group of 35 companies pay back $765 million.
Until recently Ireland was infamous for tax loopholes allowing companies like Apple to funnel billions in revenue from other countries yet avoid paying normal local or foreign taxes. The Irish government is working to close some of those loopholes, but could still face reprimands from the Commission, which has been investigating the country since 2014.
A ruling was recently delayed and now isn't expected to be issued until at least March.
Apple CEO Tim Cook has repeatedly insisted that his company follows the law and pays everything it owes. In a 60 Minutes interview the executive complained about U.S. politicians scrutinizing Apple's tax dodges, calling the allegations "total political crap."
Comments
Yeah right... planted by someone with an agenda like all the other trash.
...and by the way, Apple has been setting more than plenty aside for potential tax claims for years. So even if they were to pay, that would come from prior years income statements.
If and it still is a big if Apple is found to have benefited from state aid not allowed under EU law. Apple has to pay back what is owed.. it is essentially a back dated demand on the taxes it should have paid (if it is found to be in the wrong).
Apple can't undo having set up operations in Ireland premised on those incentives. Apple kept their end of the bargain. The problem is these overspending governments looking for any possible source of funding to put off the inevitable reckoning that will come.
If you take the child tax exemption, or the mortgage interest exemption on your annual taxes,
you are NOT "dodging taxes".
You are actually adhering to the current tax rules.
If the author feels otherwise, then "Roger Fingas dodges taxes", every time he
uses the tax rules, to lower his tax liability.
Government in and of itself isn't the problem, multi-billions $ corps and billionaires BUYING the government is.
This shouldn't just be about Apple, but all the companies that have had their snouts in the trough.