EU-imposed Apple Irish tax bill could exceed $21.2B if appeal process fails

Posted:
in AAPL Investors
A long appeal process over Apple's Ireland tax bill might have unintended consequences, with a governmental official who has opposed the ruling making claims that the tally will be closer to 19 billion euro ($21.2 billion) when the process concludes.




"Depending on all the claims that might emerge from the US or other EU countries at the instigation or prompting of Commissioner Vestager, [the tax edict] could be at that figure at max," the head of Ireland's Revenue's International Division Eamonn O'Dea told RTE Radio. "But who knows what is going to transpire over the coming years?"

O'Dea has been opposed a large European Commission tax ruling all along. During the course of the investigation, he claimed that the Irish tax authority had collected the full amount that Apple owed the nation, but perhaps not all that was owed to other European countries.

"If the two Apple companies concerned had been resident in Ireland of course there would be a basis for having charged the amounts mentioned or alleged by the Commission," reiterated O'Dea. "While somebody may be owed 13 billion euro, Ireland isn't owed it."
"We have applied the law fully in Revenue. It should not be put at Ireland's door." - head of Ireland's Revenue's International Division Eamonn O'Dea
Apple employs over 6,000 people in Cork, Ireland, and has been established in the country since 1980. Apple has said that it will remain in Ireland regardless of the results of the European Commission's investigation and ruling.

"I do not think Ireland should be trying to tax 60 percent of the global profits of this particular multinational corporation based on their branch in Cork.," said O'Dea. "We have applied the law fully in Revenue. It should not be put at Ireland's door or Revenue's door."

The European Commission's investigation on Apple's tax arrangement with Ireland concluded on Tuesday, with the ruling mandating Apple to pay 13 billion euro ($14.5 billion) to Ireland in back taxes, reduced only if other E.U. countries seek part of the proceedings. The regulatory group claimed that tax rates on European profits were illegally low at 0.005 percent in 2014, and 1 percent in 2003, and the payment was based on increasing that effective tax to 12.5 percent.

Apple will appeal the edict. Some Irish governmental officials have commenced discussions on how to fight the ruling.

A FAQ posted on Tuesday lays out Apple's path to an appeal, and notes that the process will take several years to wrap up.
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Comments

  • Reply 1 of 63
    I'd like to see the EU push this. I can't wait for them to shatter even more over it. Absolute garbage attempt at a dictatorship. 
    spacekidlatifbpapple ][stevehjony0Capriguy
  • Reply 2 of 63
    512ke512ke Posts: 782member
    Apple may remain in Ireland but Apple's money won't remain in Europe.
    latifbpjony0Capriguy
  • Reply 3 of 63
    gatorguygatorguy Posts: 21,283member
    I'd like to see the EU push this. I can't wait for them to shatter even more over it. Absolute garbage attempt at a dictatorship. 
    If/when other countries begin laying claim to some of this the discussion changes. The Irish Tax authorities aren't denying Apple's may owe several $B in taxes, but it's to other countries (ie Germany, France, Great Britain, Australia, et al) and not Ireland. He's objecting to Ireland being tasked with getting it for them, believing they are knocking on the wrong door. 
    clexman[Deleted User]austriacus
  • Reply 4 of 63
    gatorguygatorguy Posts: 21,283member
    512ke said:
    Apple may remain in Ireland but Apple's money won't remain in Europe.
    For the most part it's not in Europe now. Look no further than New York.
    edited August 2016 gwydionxixoaustriacus
  • Reply 5 of 63
    volcanvolcan Posts: 1,791member
    I don't know how far back these taxes are being assessed but even the IRS only audits up to 6 previous years.
  • Reply 6 of 63
    SpamSandwichSpamSandwich Posts: 31,499member
    A new trade war with Europe, eh? Well, if you clowns insist...
    edited August 2016 thewhitefalconspacekidlatifbpapple ][austriacus
  • Reply 7 of 63
    volcan said:
    I don't know how far back these taxes are being assessed but even the IRS only audits up to 6 previous years.
    The EU will go back as far as they want to in order to stave off collapse. Soon, companies will be paying taxes on the earnings of companies they purchased decades ago. 
    SpamSandwichlatifbpsteveh
  • Reply 8 of 63
    Well you've got bankrupt countries forcing the EU to dolly out loans from the pockets of the more prosperous ones which creates a massive void and need to collect due taxes. I'm sure that 21 billion dollars looks quite tasty to these nations.
    spacekidlatifbpstevehjony0
  • Reply 9 of 63
    gatorguygatorguy Posts: 21,283member
    volcan said:
    I don't know how far back these taxes are being assessed ...
    10 years.
    [Deleted User]austriacus
  • Reply 10 of 63
    gwydiongwydion Posts: 1,076member
    volcan said:
    I don't know how far back these taxes are being assessed but even the IRS only audits up to 6 previous years.
    The EU will go back as far as they want to in order to stave off collapse. Soon, companies will be paying taxes on the earnings of companies they purchased decades ago. 
    The EC will go back 10 years from the start of the investigation, like always has been, it is right there, in the documents.
    singularitylondor[Deleted User]austriacus
  • Reply 11 of 63
    crowleycrowley Posts: 6,063member
     mcfrazieriv said:
    Well you've got bankrupt countries forcing the EU to dolly out loans from the pockets of the more prosperous ones which creates a massive void and need to collect due taxes. I'm sure that 21 billion dollars looks quite tasty to these nations.

    It's looks like a drop in the ocean.

    this investigation was prompted by the exposure of LuxLeaks, no other reason required.
    edited August 2016 londorxixo[Deleted User]
  • Reply 12 of 63
    singularitysingularity Posts: 1,329member
    gwydion said:
    The EU will go back as far as they want to in order to stave off collapse. Soon, companies will be paying taxes on the earnings of companies they purchased decades ago. 
    The EC will go back 10 years from the start of the investigation, like always has been, it is right there, in the documents.
    but then how could they have faux outrage if they actually read the documents! They might be forced to have informed discussion instead of "EU BAD"
    londorgatorguygwydion[Deleted User]
  • Reply 13 of 63
    Sigh. Cue the EU welfare queens (and kings)....
    SpamSandwichthewhitefalconlatifbpapple ][
  • Reply 14 of 63
    crowleycrowley Posts: 6,063member
    Sigh. Cue the EU welfare queens (and kings)....
    The apologist whiners and the alt-right crazies need some counterbalance.
    edited August 2016 singularityppietragwydionxixo[Deleted User]
  • Reply 15 of 63
    ppietrappietra Posts: 171member
    Apple could never owe that much money to other European countries because no one would ever be able to demonstrate that Apple’s creation of value, that comes from intellectual property, is created or is resident solely in those countries, they would only be able to tax the profits generated from distribution and part of the services.
    Ireland is the only european country where Apple could be taxed that much money, but it seems they don’t agree with that because of their laws.
    mwhitehlee1169latifbp
  • Reply 16 of 63
    crowley said:
    Sigh. Cue the EU welfare queens (and kings)....
    The apologist whiners and the alt-right crazies need some counterbalance.
    You don't have to be in the alt-right to know the EU is a failed experiment. 
    spacekidlatifbpapple ][steveh
  • Reply 17 of 63
    crowleycrowley Posts: 6,063member
    crowley said:
    Sigh. Cue the EU welfare queens (and kings)....
    The apologist whiners and the alt-right crazies need some counterbalance.
    You don't have to be in the alt-right to know the EU is a failed experiment. 
    A certain degree of craziness certainly helps, though they seem to go hand in hand anyway.
    singularity
  • Reply 18 of 63

    crowley said:
    Sigh. Cue the EU welfare queens (and kings)....
    The apologist whiners and the alt-right crazies need some counterbalance.
    alt-right, ctrl-left.... they're both the same to me. Nut cases.
    crowleylatifbpxixo
  • Reply 19 of 63
    The thing you guys don't realise is that all the US corporations set up in Ireland because it's a way for them to avoid paying their due taxes in other European countries. It's not just Apple, it's Google, Facebook, Starbucks etc. It's absolutely disgraceful the amount of tax they get away with. You should do some research into it before saying it's a money grab from other EU states. Stackbucks for example paid just £8.6m over 14 years to the UK with £3billion in sales during that period. They're able to do this because of dodgy tax systems that Ireland has set up. It's not right and none of us should be supporting Apple or any other company that does this. Americans might be allergic to tax, hence the reason your public services are non-existent, but even you should be able to recognise this is messed up.
    xixogiles[Deleted User]avon b7
  • Reply 20 of 63
    Well you've got bankrupt countries forcing the EU to dolly out loans from the pockets of the more prosperous ones which creates a massive void and need to collect due taxes. I'm sure that 21 billion dollars looks quite tasty to these nations.
    When you are looking for tax revenue from a company that makes high priced "luxury" consumer electronics as a means to remedy the financial situations in these bankrupt countries, you have a problem. Would Italy's share of Apple's prospective unpaid taxes solve their problems or do they need Germany's and France's share too? Maybe Italy and Greece would do better if their citizens bought cheaper phones and invested more in their healthcare and retirement. 
    edited August 2016 latifbpsteveh
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