Apple Finishes Paying $15.3B in Back Taxes to Ireland, Prompting EU Regulators to Drop Lawsuit

Discussion in 'Politics, Religion, Social Issues' started by MacRumors, Sep 19, 2018.

  1. MacRumors macrumors bot

    MacRumors

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    Just over two years after the European Commission ruled that Apple was receiving illegal state aid from Ireland -- where it had reportedly paid less than 2 percent in taxes compared to the country's headline 12.5 percent corporate tax rate -- Apple has now paid back the entire 13.1 billion euros ($15.3 billion) it owed in back taxes (via Reuters).

    The European Commission confirmed the payment this week, and furthermore said that EU antitrust regulators now plan to drop all legal action against Ireland. The EU had originally taken Ireland to court for failing to recover the $15.3 billion in tax due from Apple.

    The confirmation of the withdrawal of litigation came from an email sent by European Commission spokesman Ricardo Cardoso:
    Although the EU gave its final ruling in August 2016 regarding Apple's tax loophole in Ireland, the regulatory body had first kicked off an investigation into Apple's tax arrangements back in 2014. The ruling eventually found that Apple was allowed to pay an effective corporate tax rate of 1 percent on its European profits in 2003, down to 0.005 percent in 2014. Specifically in 2014, Apple paid 0.005 percent tax on EU profits, which means that "For every million euros in profits, it (Apple) paid just EUR500 in taxes," said European Competition Commissioner Margrethe Vestager at the time.

    Apple and CEO Tim Cook were adamant that the ruling was based on "fundamental errors" and Cook referred to the tax avoidance accusations as "total political crap." He elaborated, stating that Apple pays all of the taxes it owes based on the laws of each country in which it operates. Likewise, the Irish government said it did not give favorable tax treatment to Apple and added that it "does not do deals with taxpayers."

    Apple and Ireland eventually moved to appeal the ruling, but as things escalated the European Commission decided to open litigation against Ireland in October 2017 for its failure to procure Apple's back taxes. Eventually, Apple began paying the back taxes it owed around March 2018, and in a report from earlier in the year sources stated that payments were expected to finish around September.

    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 Finishes Paying $15.3B in Back Taxes to Ireland, Prompting EU Regulators to Drop Lawsuit
     
  2. penajmz macrumors 68040

    penajmz

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    #2
    So this is why iPhones are even pricier this year....
     
  3. gsmornot macrumors 68030

    gsmornot

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    This is like me getting a $15.30 bill. Just pay it and move on.
     
  4. citivolus macrumors 6502a

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    #5
    I thought Apple was just paying the back taxes into escrow while the appeal was working its way through the process, not that Apple finally accepted responsibility for the liability...?
     
  5. chagla macrumors 6502a

    chagla

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    #6
    Good job Ireland / EU. Would be good if US gov't went after some big pharma and other corporations.
     
  6. vrDrew macrumors 65816

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    #7
    Imagine the sad fate of the Irish government! Forced to accept $15 billion in tax money it obviously has no use for. For shame, for shame.

    Hey, Irish Government. Here's a suggestion: Take some of that money and use it to properly investigate the century+ of abuse and neglect inflicted on poor young women and children. You know, the Magdalene laundries. The orphanages that were more like concentration camps. Take some of that money and make an offer of compensation to the thousands of young people who were sexually abused by Priests of the Catholic Church that ran your country for much of its existence.

    Ireland is now a rich, cultured, and beautiful country. But its got some sad times in its past. Take this windfall and make amends for one of the stains in your recent history.
     
  7. 69Mustang macrumors 603

    69Mustang

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    #8
    Comparatively speaking that $15.3B was a third of Apple's $45B net income for 2017. If that's like you getting a bill for $15.30, back of napkin math says you're broke.:p:D There's no scenario where $15B is a trivial amount. Even spread over two years of payments, there's nothing trivial about that amount of money.
     
  8. Mr. Retrofire macrumors 601

    Mr. Retrofire

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    #9
  9. gsmornot macrumors 68030

    gsmornot

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    #10
    My point was to be funny but that's ok. Your reply is correct in that it is not a small amount they paid.
     
  10. 69Mustang macrumors 603

    69Mustang

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    /Re-reads gsmornot's quote.

    Hmm, that's kinda Stephen Wright funny. Not Dave Chappelle funny. Stephen Wright funny needs some of these :p:D:);) or else you end up in Poe's Law territory.
     
  11. Scooz macrumors regular

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    #12
    $15.38
    So...
    What?
    Ah.
    Back Taxes. Back Taxi. Tzzz.
    Then...
    $15.3B
    How much tip? These US guys...
    Ah, you got an app. Great.
     
  12. macduke macrumors G3

    macduke

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    #13
  13. EW800 macrumors 6502

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    #14
    $15.3B.... Tim Cook carries that much in his wallet. Won’t even phase him....
     
  14. JosephAW macrumors 68000

    JosephAW

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  15. Mousse macrumors 68000

    Mousse

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    #16
    The wheels of justice turns slowly. Or as the Chinese say, "The net of heaven encompasses all. The mesh may be big, but nothing slips through."
     
  16. VulchR macrumors 68020

    VulchR

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    #17
    About bloody time Apple. Your scam affected everybody in the EU.
     
  17. ArtOfWarfare macrumors G3

    ArtOfWarfare

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    #18
    That sounds anti-consumer to me. I don't want taxes inflicted on big pharma - I want big pharma to fix their pricing and issue refunds to everyone they've ripped off over the years.

    Which will result in a lot of money going back to the government, paying back a lot of stuff paid out as medicare/medicaid, but I wouldn't view that as a tax.
     
  18. chfilm macrumors 68000

    chfilm

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    #19
    They don’t know what they’re doing.. even if apple products were excluded for now, eventually something bad will happen with the direction in which trump is steering the world economy.
     
  19. bladerunner2000 macrumors 68020

    bladerunner2000

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    #20
    Apple's worth a trillion dollars. 15 billion is NOTHING to them. Evading taxes in USA was for their benefit, I'm sure they're saving regardless.
     
  20. rpmurray macrumors regular

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    #21
    “In light of the full payment by Apple of the alleged illegal State aid it had received from Ireland, Commissioner Vestager will be proposing to the College of Commissioners the withdrawal of this court action.”

    Fixed that for you European Commission spokesman Ricardo Cardoso.
     
  21. Naaaaak macrumors 6502

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    #22
    This shows exactly one thing: Apple fears antitrust regulation.
     
  22. danpass macrumors 68020

    danpass

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    #23
    so loopholes, ie the statute as written, only applies when the money is inconsequential?

    Beyond that the loophole, that they wrote, needs to be closed?

    Equal application of the law ... clearly not.


    -
     
  23. macduke macrumors G3

    macduke

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    #24
    Unfortunately I think they do know what they are doing. There aren't enough wars these days so they probably want to steer things in that direction on a global scale. Why else piss off every other country while massively building up our defenses? They want to recreate the economic boom and development of the 50s or something weird where America was on top and everyone else was poor and rebuilding. That's not sustainable. The reason Apple gets a pass is because they got on Trump's good side with their plans for those big, beautiful plants in the U.S. which will happen "someday." I think Apple played the president and I'm not surprised he doesn't realize it.
     
  24. cocky jeremy macrumors 68040

    cocky jeremy

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    #25
    Idiotic. They shouldn't have paid a dime.
     

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