Apple ordered to pay $15 billion USD for tax evasion

[Achtung!]

http://www.reuters.com/article/us-eu-apple-taxavoidance-idUSKCN114211

EU demands Apple pay Ireland up to 13 billion euros in tax

There are wider implications for this other than the $15 billion USD that Apple now almost invariably owes.

$15 billion USD isn't actually that much, it's about 6% of Apple's total cash pile. However, bigger damage will be dealt over Apple's stock price and reputation.

Europe has a huge population and the people there already are not fond of the US. This massive scandal has the potential to be much worse than the $15 billion USD payment, Apple could lose much more than this in the long-term as there will likely be far-reaching consequences to its reputation in Europe.

I guess the bigger picture will become clearer after the iPhone 7 gets released.

 

[Anubis]

good. needs to happen to every company who do this stupid crap trying to avoid paying what they should

 

[mikeymikec]

http://www.bbc.co.uk/news/business-37220799

It will have a profound and harmful effect on investment and job creation in Europe."

IMO it's pretty loathsome of Apple to attempt to take the moral high ground.

I wish I knew why governments keep making decisions like this; they're wildly unpopular, for every business that they make such a deal with, it's not unreasonable to assume that another hundred want similar treatment, and even though most politicians have a thirst for power and influence, are they really so short-sighted not to see that the power, money and influence is all going in the wrong direction here? It's like Apple in this case is buying influence with money that they would have owed anyway! Is it just a few politicians who are getting modest contributions to their retirement packages, the risk being if they get caught, the other politicians (as well as the press) will want to throw them under the bus?

For all the money that Ireland has got from the EU, even if one puts aside any naive concept of paying one's debts, I would have thought that the Irish government would want to get more tax out of Apple simply because the more money they have, the more influence they can wield in Europe.

 

[Commodus]

Just a quick heads-up before the "Apple is the only company that ever does bad things" camp swings into high gear: remember that Google, Microsoft and others also take advantage of these tax loopholes. It's just a question of who gets asked to pay first.

 

[Achtung!]

good. needs to happen to every company who do this stupid crap trying to avoid paying what they should

Except, this is Ireland that we're talking about. Not a huge market for Apple products.

This leads me to think, what if this becomes revealed as a Europe-wide tax evasion?

 

[Commodus]

Except, this is Ireland that we're talking about. Not a huge market for Apple products.

This leads me to think, what if this becomes revealed as a Europe-wide tax evasion?

You mean like how Google has been ordered to pay back taxes by France and the UK?

 

[A5]

Except, this is Ireland that we're talking about. Not a huge market for Apple products.

This leads me to think, what if this becomes revealed as a Europe-wide tax evasion?

There are dozens and dozens of international companies that are "officially" headquartered in Ireland for tax purposes despite their entire operation there being a small rental office with a handful of people. This is a giant global issue (especially among large American companies), and Apple is just the first one getting asked to pay up.

 

[Yakk]

Why doesn't Apple just buy a private island in international waters and start developments on it like cruise ship lines to bypass taxes altogether?

 

[teejee]

Why doesn't Apple just buy a private island in international waters and start developments on it like cruise ship lines to bypass taxes altogether?

And having no free trade agreements at all. Every country can simply choose a suitable customs fee specifically for Apple stuff...

Sent from my LG-D855 using Tapatalk

 

[Phynaz]

Just another example of the EC going after successful American companies. Even Ireland is saying this impugns on thier sovereignty.

I have no doubt that most here won't even read beyond the headline though.

 

[senseamp]

You mean every other Irish company also pays 0.005% rate, and allocates almost all profits to a mysterious "head office" that has no employees? No sweetheart deal at all?
Tim Cook should stop embarrassing himself and Apple, and pay taxes. You chose Ireland to book profits, then be taxed like an Irish company would.

 

[Phynaz]

Apple is Irelands' largest employer and largest tax payer. They have over 6,000 employees in Ireland.

Has your city never given a tax a break to a large employer?

What was illegal about it under Irish law? Why is Ireland saying there is nothing illegal about it? Why is the U.S. government protesting the action?

Simple, it's a cash grab.

 

[senseamp]

Apple is Irelands' largest employer and largest tax payer. They have over 6,000 employees in Ireland.

Has your city never given a tax a break to a large employer?

What was illegal about it under Irish law? Why is Ireland saying there was nothing illegal about it? Why is the U.S. government protesting the action?

Simple, it's a cash grab.

And that's why EU competition authorities are stepping in, so that a large company like Apple doesn't get a special deal and just because of its size.

 

[Phynaz]

You didn't answer any of my questions.

Try to rub a couple brain cells together this time and avoid your knee-jerk reaction that profit is bad.

 

[Fanatical Meat]

While I don't like this practice, Ireland doesn't want the tax money and claims they (apple) hasn't violated any tax law. This is an EU penalty that seems oddly misplaced.

 

[senseamp]

You didn't answer any of my questions.

Try to rub a couple brain cells together this time and avoid your knee-jerk reaction that profit is bad.

Profit is good, and profit is taxed. Ireland is protesting because it knows that the main reason Apple is there is to dodge taxes, and it's fine with giving it a sweetheart deal. But that's against EU rules. Ireland is part of the EU. US Treasury is hoping this money will eventually be repatriated, so it wants to tax it instead of Ireland taxing it. Again, that's not EU's concern. Apple decided to claim these profits in Ireland. Ireland is part of EU, so Apple has to play by EU rules, not just special deals it cuts with Ireland.

 

[Phynaz]

Still refusing to answer my questions.

What Irish laws were broken?

Has your city never given tax incentives to their largest employer? Was that bad?

 

[Phynaz]

While I don't like this practice, Ireland doesn't want the tax money and claims they (apple) hasn't violated any tax law. This is an EU penalty that seems oddly misplaced.

It's just the EC extorting money from U.S. companies. Nothing new.

 

[Ns1]

I like how Ireland opposes all of this.

 

[blankslate]

This will go away after Apple donates a suitable amount to the Clinton Foundation.....



____________

 

[senseamp]

Still refusing to answer my questions.

What Irish laws were broken?

https://en.wikipedia.org/wiki/Twenty-eighth_Amendment_of_the_Constitution_of_Ireland
EU rules are Irish law too.

Has your city never given tax incentives to their largest employer? Was that bad?

My city is not in the EU. EU has their own rules.
Apple is free to argue to the EU competition commission that it deserved the special tax breaks because it's large. I am sure it will go over great.

 

[1prophet]

Still refusing to answer my questions.

What Irish laws were broken?

Has your city never given tax incentives to their largest employer? Was that bad?

Apple broke the most important law, make sure you have enough grease, they had only enough grease for the American and Irish politicians but forgot to grease the EU politicians.

 

[glenn1]

There are dozens and dozens of international companies that are "officially" headquartered in Ireland for tax purposes despite their entire operation there being a small rental office with a handful of people. This is a giant global issue (especially among large American companies), and Apple is just the first one getting asked to pay up.

If they were obeying Irish tax laws (even if it was in accordance with special arrangements the company made with the Irish government), why should Apple "pay up"? The EU should be acting against Ireland for not fulfilling whatever tax code obligations they're required to as an EU member.

 

[senseamp]

Tim Cook really believes that paying virtually no taxes (0.005%-1%), setting up a non-existent entity that books most of the profits, etc, is not a special deal that Apple got because of it's leverage, but that it's available to all companies in Ireland? He is either a liar or the most clueless CEO ever.

 

[Yakk]

I like how Ireland opposes all of this.

Yeah they really are. Ireland could lose Big here long term.