Apple Could Owe More Than $8 Billion in European Tax Probe

Discussion in 'Politics, Religion, Social Issues' started by MacRumors, Jan 15, 2016.

  1. MacRumors macrumors bot

    MacRumors

    Joined:
    Apr 12, 2001
    #1
    [​IMG]


    [​IMG]
    Apple could owe more than $8 billion in back taxes if the European Commission finds issue with the iPhone maker's corporate tax policies in Ireland, according to analysis by Bloomberg Intelligence.

    Apple is one of several multinational corporations that have been scrutinized for corporate tax avoidance in Europe over the past few years. The European Commission began Apple's tax probe in June 2014, and formally accused the iPhone maker of receiving illegal state aid from Ireland three months later.

    The company's $64.1 billion in profit generated from 2004 to 2012 could be subject to a 12.5% tax rate, compared to its current foreign tax rate of about 1.8%, depending on the outcome of the investigation. A decision in the probe is expected in Brussels by March, possibly after the 2016 Irish election.

    [​IMG]
    Apple's tax breakdown in Ireland (Image: Bloomberg Intelligence)

    Apple operates multiple subsidiary companies in Ireland to pay significantly less tax outside the U.S., where it earns about 55% of its revenue. Apple continues to deny any wrongdoing, and both the company and Ireland vow to take the European Commission to court over any negative verdict.

    Last month, Apple agreed to pay 318 million euros in Italy to settle an investigation that accused the company of booking profits generated in Italy through an Irish subsidiary, in an effort to lower its taxable income base and save 879 million euros between 2008 and 2013. Italian regulators concluded that tax probe in March.

    Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

    Article Link: Apple Could Owe More Than $8 Billion in European Tax Probe
     
  2. Crosscreek macrumors 68020

    Crosscreek

    Joined:
    Nov 19, 2013
    Location:
    Margarittaville
  3. Codyak macrumors 6502

    Joined:
    Apr 6, 2012
    #3
    So are they breaking some sort of law, or just using Ireland's specifically low tax rate?
     
  4. unlinked macrumors 6502a

    Joined:
    Jul 12, 2010
    Location:
    Ireland
    #4
    The EU should really stick to what it does well and keep its hands off countries tax policies.
     
  5. apolloa macrumors 604

    apolloa

    Joined:
    Oct 21, 2008
    Location:
    Time, because it rules EVERYTHING!
    #5
    Interesting to see the EU commission clamping down, have they closed the loopholes in the law now then?
     
  6. d0minick macrumors 6502

    Joined:
    Mar 8, 2011
    #6
    If they are breaking the law, make them pay. If they aren't, then fix the damn tax laws so they can bring the money home.
     
  7. BarmyGnome macrumors 6502

    BarmyGnome

    Joined:
    Apr 20, 2015
  8. apolloa, Jan 15, 2016
    Last edited: Jan 15, 2016

    apolloa macrumors 604

    apolloa

    Joined:
    Oct 21, 2008
    Location:
    Time, because it rules EVERYTHING!
    #8
    So the European Commission should not do its job and investigate issues in European countries? Ok..
     
  9. justperry macrumors 604

    justperry

    Joined:
    Aug 10, 2007
    Location:
    In the core of a black hole.
    #9
    No, Apple should pay fair taxes in countries where they operate, now they don't.
     
  10. SoAnyway macrumors 6502

    Joined:
    May 10, 2011
    #10
    Why does anyone defend a multi-billion dollar company from paying their taxes considering how much they benefit from the rest of society?

    I'll never ever understand the conservative mindset, it's rather nutty.
     
  11. Populism macrumors regular

    Populism

    Joined:
    Jun 11, 2014
    #11
    That's more money than some people see in a lifetime.
     
  12. apolloa macrumors 604

    apolloa

    Joined:
    Oct 21, 2008
    Location:
    Time, because it rules EVERYTHING!
    #12
    Because they are blinded by Apples clever marketing.
     
  13. TallManNY macrumors 68040

    TallManNY

    Joined:
    Nov 5, 2007
    #13
    They are using Ireland's specifically low tax rate. Ireland set itself up as a tax haven for U.S. and to a lesser extent English companies. It works well. The populace speaks English and is highly educated. They aren't on a completely different time zone like India and Australia. So many U.S. companies set up shop in Ireland to take advantage of this. Ireland likes this because of all the high paying jobs it brings into their country. That is why Ireland is helping with Apple's defense.
     
  14. username: macrumors 6502a

    Joined:
    Dec 16, 2013
    #14
    They are not breaking any laws. If they are fined that will be insane. The laws need to change. Up to this point Apple has not done anything illegal. It's not the fault of business that countries tax laws are always so greedy and short sighted.

    Who honestly thinks taxes are "for the people" and "for the greater good"? Governments are just as scheming and corrupt as the corporate world.
     
  15. Gasu E. macrumors 68040

    Gasu E.

    Joined:
    Mar 20, 2004
    Location:
    Not far from Boston, MA.
    #15
    If countries join the EU, which is a free-trade zone, the EU has an interest in establishing consistent tax policies. Due to membership in the EU, a country such as Ireland is protected from having tariffs imposed on it by other EU countries; the EU gets those regulatory rights, in return. It's only fair and reasonable. If Ireland doesn't like it, they can leave the EU.
     
  16. Orlandoech macrumors 68040

    Orlandoech

    Joined:
    Jun 2, 2011
    Location:
    Salt Lake City, UT
    #16
    I am a "conservative mindset' and I don't agree with it at all. I agree with you.
     
  17. TallManNY macrumors 68040

    TallManNY

    Joined:
    Nov 5, 2007
    #17
    The interesting thing is that the more taxes Apple pays overseas, the less additional tax they will have to pay to the U.S. when they bring the money back here. So if they lose this case it actually might result in them bring back cash to U.S. for a fat dividend to shareholders.
     
  18. unlinked macrumors 6502a

    Joined:
    Jul 12, 2010
    Location:
    Ireland
    #18
    That is up to the countries they operate in to decide and implement. Italy wanted to tax Apple , they setup the law to do so and then enforced it. Trying to reclassify tax polity as state aid is wrong and presumably just an attempt to bypass the different rules for agreeing tax policy changes in the EU.
     
  19. Orlandoech macrumors 68040

    Orlandoech

    Joined:
    Jun 2, 2011
    Location:
    Salt Lake City, UT
    #19
    You honestly believe we live in a world that truly believes "innocent until proven guilty" lol?
     
  20. sransari macrumors 6502

    Joined:
    Feb 11, 2005
    #20
    What I'll never understand is why it is considered greedy to want to keep money that you've earned, but it's NOT considered greedy for someone to take someone else's money that the earner has earned and the taker hasn't.
     
  21. Rigby macrumors 68040

    Joined:
    Aug 5, 2008
    Location:
    San Jose, CA
    #21
    "current foreign tax rate of about 1.8%" ... that's not a tax, but a hidden subsidy for a multi-billion dollar company.
     
  22. Orlandoech macrumors 68040

    Orlandoech

    Joined:
    Jun 2, 2011
    Location:
    Salt Lake City, UT
    #22
    I agree with this as well. Man, which side am I on? Talk about a double entendre.
     
  23. guzhogi macrumors 68020

    guzhogi

    Joined:
    Aug 31, 2003
    Location:
    Wherever my feet take me…
    #23
    It's actually quite simple: why pay $10 billion in taxes when you could just as easily set up shop in Ireland and pay $2 billion and get the same services? (I'm making up the numbers, but you get the gist)
     
  24. Gasu E. macrumors 68040

    Gasu E.

    Joined:
    Mar 20, 2004
    Location:
    Not far from Boston, MA.
    #24
    Having a low tax rate to encourage businesses to actually operate there (building plants or establishing engineering centers, for example) is perfectly fine. But in Ireland's case, the laws essentially allow money earned elsewhere to be passed through Ireland in order to get a lower tax rate. Structurally, it's kind of like money-laundering. It's legal under Irish law; but the contention is that it violates EU regulations that Ireland has agreed to as a condition of their EU membership. Ireland is free to leave the EU and not be subject to EU rules, if they so choose.
     
  25. TallManNY macrumors 68040

    TallManNY

    Joined:
    Nov 5, 2007
    #25
    Well in the U.S. conservatives generally seem to not feel like the government should get any money. Or at least they feel like the government should get a lot less money to use.
     

Share This Page