EU presses Apple for details on latest tax arrangements in wake of Paradise Papers
The European Union's competition commissioner has asked Apple to update details on its tax situation, following allegations that the company relocated some operations from Ireland to Jersey to avoid higher rates.
"I have been asking for an update on the arrangement made by Apple, the recent way they have been organized, in order to get the feeling whether or not this is in accordance with our European rules but that remains to be seen," the Washington Post quoted Margrethe Vestager as saying at a technology summit in Lisbon, Portugal.
The official said that her requests for information actually predate the Jersey claims, but noted that it "remains to be seen if we will open more cases after the Paradise Papers."
The Paradise Papers have exposed a myriad of offshore financial arrangements for individuals and businesses. To escape a crackdown on Irish tax loopholes, Apple reportedly turned to a Bermuda-based law firm, Appleby, to search for a place it could continue avoiding normal taxes on billions in international revenue. The company is said to have settled on Jersey, a U.K. crown depndency off the coast of France.
Apple subsequently posted a vehement denial online, saying that it didn't move any operations or investments out of Ireland, or reduce its tax payments in any country.
Late last year the European Commission ordered Ireland to collect $14.5 billion in back taxes from Apple, arguing that it had extended preferential -- and therefore illegal -- state aid to the company. Both Apple and Ireland are pursuing appeals, though the Commission is bringing Ireland to court for missing a collection deadline.
Apple has some $252 billion in overseas cash reserves, but has refused to bring anything back to the U.S. unless it can avoid a standard 35 percent tax rate. The Republican party is seeking a plan that could drop taxes on repatriated cash to 12 percent -- Apple CEO Tim Cook has voiced his support for lower corporate taxes, despite his opposition to Republicans on many other platforms like LGBT rights and immigration.
"I have been asking for an update on the arrangement made by Apple, the recent way they have been organized, in order to get the feeling whether or not this is in accordance with our European rules but that remains to be seen," the Washington Post quoted Margrethe Vestager as saying at a technology summit in Lisbon, Portugal.
The official said that her requests for information actually predate the Jersey claims, but noted that it "remains to be seen if we will open more cases after the Paradise Papers."
The Paradise Papers have exposed a myriad of offshore financial arrangements for individuals and businesses. To escape a crackdown on Irish tax loopholes, Apple reportedly turned to a Bermuda-based law firm, Appleby, to search for a place it could continue avoiding normal taxes on billions in international revenue. The company is said to have settled on Jersey, a U.K. crown depndency off the coast of France.
Apple subsequently posted a vehement denial online, saying that it didn't move any operations or investments out of Ireland, or reduce its tax payments in any country.
Late last year the European Commission ordered Ireland to collect $14.5 billion in back taxes from Apple, arguing that it had extended preferential -- and therefore illegal -- state aid to the company. Both Apple and Ireland are pursuing appeals, though the Commission is bringing Ireland to court for missing a collection deadline.
Apple has some $252 billion in overseas cash reserves, but has refused to bring anything back to the U.S. unless it can avoid a standard 35 percent tax rate. The Republican party is seeking a plan that could drop taxes on repatriated cash to 12 percent -- Apple CEO Tim Cook has voiced his support for lower corporate taxes, despite his opposition to Republicans on many other platforms like LGBT rights and immigration.
Comments
But really, the EU can just toss off. They clearly do not have their house in order.
or any other company for that matter....
Politicians never accuse you of ‘greed’ for wanting other people’s money–only for wanting to keep your own money. The difference between a politician and a pickpocket is that the pickpocket doesn’t get indignant when you tell him to keep his hands to himself.
– Joseph Sobran
American voters should understand that Congress will always find a way to spend every last dollar sent to Washington. Remember, politicians get votes by promising everything to everyone, always at the expense of some other invisible taxpayers. The federal government cannot maintain a budget surplus any more than an alcoholic can leave a fresh bottle of whiskey untouched in the cupboard.
– Ron Paul
You can, of course, edit the latter to say “European” (though they don’t vote), “Parliament” and “Brussels”, respectively.
Close up your fracked up laws and live with the consequences of that, or shut the hell up about your mock consternation. I'm not fooled by this though this grandstanding my impress the peanut gallery.
This kind of double talk were those guys (in the EU and abroad) are all amazed that tax paradise exist when most of them have all their money there is sounds pretty hollow.
This is akin to the Claude Rains character being disturbed gambling is going on in that place while collecting his winnings in the film Casablanca.
Bshank ...suggesting that Apple should cut and run is missing the point. Firstly, Apple are not paying enough tax so they do not have the moral high-ground here, even over the rightly despised EU; Secondly, you clearly have no idea of what the EU market is worth to Apple.
For those who defend the likes of Apple, think how many more teachers, hospital beds, police and firemen, carers, etc your country could afford if these organisations paid their way properly and honestly.
So Apple really has no valid argument about the value being created in the US and therefor that's where the taxes should be paid when they transfer that value to a foreign country and use creative accounting and obscure law to avoid those taxes there and worldwide. Right?
These EU officials are doing their job: enforcing the tax laws. Why does this seem so strange to you?
Dear European Union,
The details are: We have complied with all applicable laws.
Now sod off.
That's because they have a moral and legal obligation to their shareholders which supersedes any imaginary obligation to pay taxes that they aren't required to pay.
If you want to blame someone, blame your lawmakers. They're the ones who created the loopholes, mostly for the benefit of their friends and cronies. Now, when someone they don't like takes advantage of those same loopholes, they get all high horsed.