EU says Apple's cash repatriation plans won't alleviate Irish $15.9B back tax payments
Though Apple is planning to pay the U.S. some $38 billion in taxes on repatriated foreign cash, that won't impact how much it owes in Ireland, a spokesman for the European Commission said on Thursday.
"The Commission's 2016 state aid decision found that, over many years, tax rulings issued by Ireland had allowed Apple to pay less tax on profits recorded in Ireland than other companies subject to same national taxation laws. This gave Apple an illegal advantage in breach of E.U. state aid rules, which must now be recovered by Ireland -- nothing has changed in that regard," the representative explained to Reuters.
The European Commission had previously said that the amount Apple owes Ireland could be lowered if another country found sales should've been recorded there instead of Ireland, or if Apple's European subsididies were to pay more in taxes to their U.S. parent.
Since the company is merely repatriating foreign cash, it doesn't meet the necessary criteria.
Apple could still theoretically use its Irish payments to offset what it pays in the U.S., but the Irish government has yet to collect any money -- prompting the Commission to go to court -- and both Ireland and Apple are appealing the Commission's 2016 ruling.
Should they fail, Apple will owe some 13 billion euros in back taxes, currently worth about $15.9 billion U.S.
"The Commission's 2016 state aid decision found that, over many years, tax rulings issued by Ireland had allowed Apple to pay less tax on profits recorded in Ireland than other companies subject to same national taxation laws. This gave Apple an illegal advantage in breach of E.U. state aid rules, which must now be recovered by Ireland -- nothing has changed in that regard," the representative explained to Reuters.
The European Commission had previously said that the amount Apple owes Ireland could be lowered if another country found sales should've been recorded there instead of Ireland, or if Apple's European subsididies were to pay more in taxes to their U.S. parent.
Since the company is merely repatriating foreign cash, it doesn't meet the necessary criteria.
Apple could still theoretically use its Irish payments to offset what it pays in the U.S., but the Irish government has yet to collect any money -- prompting the Commission to go to court -- and both Ireland and Apple are appealing the Commission's 2016 ruling.
Should they fail, Apple will owe some 13 billion euros in back taxes, currently worth about $15.9 billion U.S.
Comments
Healthcare isn't affordable (anymore). Retirement age is getting higher and higher. Contribution to your own (obligated) retirement is getting higher and higher and the payment when your are retired is getting lower (even retroactively!).
Don't ask me, ask California, how their "affordable" health care (100% covered on pensions starting at 50) and pensions are working out right now. EU is the same thing.
Russia, for example has both "affordable healthcare" and "pension" system. The only thing I can tell you, after experiencing that as well as US healthcare (which is not in the best state), is that I would rather chose the capitalist "in-affordable" one, because any socialist "affordable" system is only affordable on paper. Why? Try "affordable" u-sound scanning done to you, for which you need to be in queue for 3-5 months to receive it. It is free, though...so it is affordable...if you don't die prior to it, that is.
Stop with that "affordable" mantra, ok? You will pay for everything, no matter what. Except in a socialist system, that cost is overblown and hidden...but it is still there.
Example2: Cost of public schooling for 1 pupil is 12700 dollars a year per student in the US. Cost of the same in private schools is 8-10k. Mind you, private schools have MUCH higher standards, but they cost less. This makes little sense, but yet here you are touting about the same "affordable" BS...
And why do you think the EU commission s greedy? Apple has to pay the tax to Ireland, not to the EU.
Read the the quote of Reuters in first paragraph again and try to understand. Because the quote is 100% spot on. Once you understand it, you'll know that your current post is just nonsense.
Sympathy for your last remarks though.
Wish it was 4-5x that much. Such an unethical tax scam company.
Other than Spotify, I can't think of a major tech company in the EU. Absolutely nothing remotely close in the league of FAANG. Heck, even China has Alibaba and Tencent, and India has Flipkart!
What "serves Apple right"? What are you blathering about? Did something happen here that we missed?
Private healthcare, services are rationed by price. Public healthcare, services are rationed by queues.
Personally, waiting for months for a serious problem sucks, and I was amazed to discover how accepting Pommies are to wait to just see an NHS GP. But hey, pick your poison.
A mix is probably the best compromise, but you then have to live in a constant war with those who think everything should be free and those that get sick of paying for other peoples’ free stuff.
But back on the EU and taxes. That Euroweenie sounds like a calf realising weaning day approaches.
Um Nokia dead? You do know they are the second largest network company in the world, and have sales of over 20 billion euro a year? Now, can you tell me what US company is crushing Nokia?
Seems like you might have your head in the sand. There are absolutely huge companies in the EU and many do business in the US as well.
https://en.wikipedia.org/wiki/List_of_largest_European_companies_by_revenue
While SAP's market cap ($130B) is above that of Netflix ($95B), it is dwarfed by companies such as Apple ($920B), Amazon ($625B), Google ($785B), Facebook ($520B), and Microsoft ($695B).