France & Netherlands among EU countries considering pursuing share of Apple taxes
In the wake of the European Commission's ruling against tax deals between Apple and Ireland, the finance ministers of several other European countries are reportedly considering a share of the iPhone maker's back taxes.
Austria, Italy, France, and the Netherlands are among the countries following the outcome of the Commission's ruling, which is set to be appealed by both Apple and Ireland, according to Deutsche Welle. Companies like Apple "have an obligation to pay taxes in a fair way," said Dutch finance minister Jeroen Dijsselbloem, adding that "international tax loopholes are a thing of the past."
"If it's legally accurate, you can be sure that as minister of finance I will take it," said Austria's Hans Joerg Schelling. "We Austrians are looking at it intensively."
Britain's Philip Hammond commented that the European Union is eager "to make sure that international corporations pay the right tax at the right place."
The Commission has accused Ireland of extending illegal state aid to Apple for years in the form of preferential tax treatment, such that in 2014, it paid just 0.005 percent on its European profits -- the company uses Ireland to funnel billions in international revenue. Although Ireland might nominally benefit from collecting more taxes, the country has used loopholes to attract multinational corporations and jobs that might otherwise go to other nations.
Ireland has been ordered to collect at least 13 billion euros ($14.6 billion) from Apple, though the final tally could reach 19 billion euros (over $21 billion) after interest. The Commission's ruling reflects growing sentiment against tax havens in Europe and abroad, fueled by crunches on government budgets, and April's release of the Panama Papers.
Austria, Italy, France, and the Netherlands are among the countries following the outcome of the Commission's ruling, which is set to be appealed by both Apple and Ireland, according to Deutsche Welle. Companies like Apple "have an obligation to pay taxes in a fair way," said Dutch finance minister Jeroen Dijsselbloem, adding that "international tax loopholes are a thing of the past."
"If it's legally accurate, you can be sure that as minister of finance I will take it," said Austria's Hans Joerg Schelling. "We Austrians are looking at it intensively."
Britain's Philip Hammond commented that the European Union is eager "to make sure that international corporations pay the right tax at the right place."
The Commission has accused Ireland of extending illegal state aid to Apple for years in the form of preferential tax treatment, such that in 2014, it paid just 0.005 percent on its European profits -- the company uses Ireland to funnel billions in international revenue. Although Ireland might nominally benefit from collecting more taxes, the country has used loopholes to attract multinational corporations and jobs that might otherwise go to other nations.
Ireland has been ordered to collect at least 13 billion euros ($14.6 billion) from Apple, though the final tally could reach 19 billion euros (over $21 billion) after interest. The Commission's ruling reflects growing sentiment against tax havens in Europe and abroad, fueled by crunches on government budgets, and April's release of the Panama Papers.
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Now the US Govt says you foreigners can't claim those Apple taxes -- those are our Apple taxes...
Battle royal to follow -- with the US Govt issuing another one-tine-only tax repatriation at low rates.
PatentlyApple has a much more thorough article on this.
"When the Irish Government hesitated in calling for a vote to support Apple's appeal over the EU tax decision Apple's CEO warned "that if the Dublin government did not join it in appealing, this would send the wrong message to business in a country whose economic model depends in part on companies like his." The next day the vote was called and passed. The EU Commissioner's response to Ireland's decision was that it's a "strange decision." He made his comments when European finance ministers gathered in Bratislava Slovakia for the first time since the commission's ruling.
Specifically, the Commissioner stated that "It is a strange decision, in a way, to say 'I don't want your €13 billion' when you could have some social programmes or economic programmes in a country that has been damaged by a crisis, but that's their own will."
The Commissioner was playing politics as expected by customizing his argument to fit those held by the Irish government's opposition party Sinn Fein who stated before the vote that "It is important that Irish taxpayers are represented. The Independent Alliance have an opportunity to do that. They should oppose any appeal and insist that the correct tax bill is paid by Apple."
The Irish Times report further noted that "opinion on the government's stance was split on the streets of Dublin where some were stunned that they would give up a potential 13 billion euro tax windfall."
To Tim Cook's statement about the decision being political crap, the EU Commissioner fired back by stating that "We are not a politicized commission we are a political commission with a political will, and this political will is clearly to fight tax evasion, tax fraud and aggressive tax planning." He added that "We are going to go further, with proposals such as a relaunch of the CCCTB (common corporate tax base) and the establishment of a European black-list of tax havens."
Asked if the Apple judgment sent out the wrong message to companies that want to invest in Europe at a time when the EU is facing a serious challenge due to the British vote to leave the bloc, Mr Moscovici said: "We are an open economy. We need to have free trade. We need to have investment from abroad, but we also need to have common rules. The message must be heard – no more tax evasion, no more tax fraud, no more tax avoidance, no more aggressive tax planning."
It was interesting to read that Moscovici pointed out that Ireland had already phased out the idea of a stateless company and the so-called double Irish system, the system that Apple has used, he said that in terms of the present position Ireland is one of the "leading countries in terms of reform of tax."
... it was a very interesting admission/statement because it's as if he's making it publicly known that companies coming to Ireland now could no longer use the same 'double Irish' tax avoidance system as Apple used, as they have eliminated it, and so they'll play the bad cop in public and help Ireland get back the taxes owed by Apple while Ireland gets to pretend they're the good guys. If the EU ultimately wins this case, then this statement will have been the admission of their game plan all along. Of course others may see that statement differently."
"...Should the EU win their case, it could spill over to Australia who have voiced similar disdain for Apple's tax avoidance system."
http://www.patentlyapple.com/patently-apple/2016/09/this-weekend-the-eu-commission-other-eu-finance-ministers-met-to-sharpen-their-knives-against-apple.html
I'm surprised that uk hasn't gone after Apple and Ireland for this. Ironically it's in apples interest for pm May to trigger the article 50 lol After all what will happen when Ireland is no longer part of the Eu?