Apple Must Repay $14.5 Billion in Back Taxes, EU Commission Rules

Discussion in 'Politics, Religion, Social Issues' started by MacRumors, Aug 30, 2016.

  1. MacRumors macrumors bot

    MacRumors

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    Apple must repay 13 billion euros ($14.5 billion) in back taxes dating back to 2003-2014, the European Commission has ruled (via BBC).

    The Apple tax ruling was confirmed this morning, after the judgement was leaked to the media yesterday. In unequivocal wording, the EU commissioner Margrethe Vestager said Apple's tax benefits in Ireland are "illegal".
    Vestiges said this selective treatment allowed Apple to pay an effective corporate tax rate of 1 percent on its European profits in 2003 down to 0.005 percent in 2014. Therefore 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 Vestager. "This is based on an in-depth investigation, it's based on the facts. I also think and hope that if it goes to the courts that it will be upheld by the European Court."

    According to the EC's press release, the existing tax rulings endorsed a way to establish the taxable profits for two Irish incorporated companies of the Apple group (Apple Sales International and Apple Operations Europe), which did not correspond to economic reality:
    Ireland Finance Minister Noonan said the country "disagrees profoundly" with the back tax ruling by the European Commission. "The decision leaves me with no choice but to seek cabinet approval to appeal. This is necessary to defend the integrity of our tax system; to provide tax certainty to business; and to challenge the encroachment of EU state aid rules into the sovereign member state competence of taxation," he said.

    Apple shares fell more than 2 percent in pre-market trading following the ruling, which comes after a three-year investigation into Apple's tax arrangements in Ireland, where it was initially thought to have paid around 2 percent or less in taxes compared to the country's headline 12.5 percent corporate tax rate.

    Update: Apple has reacted to today's ruling with the following response:
    Apple CEO Tim Cook has also posted "A Message to the Apple Community in Europe" on the Apple website.

    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 Must Repay $14.5 Billion in Back Taxes, EU Commission Rules
     
  2. Ramchi macrumors 6502

    Ramchi

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  3. SandboxGeneral Moderator

    SandboxGeneral

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    #3
    Oh man, that's gotta sting a little bit. No doubt Apple will appeal the ruling.
     
  4. vmachiel macrumors 68000

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    #4
    They'll appeal it down but.. Good! Stop dogging taxes. Goes for all companies.
     
  5. NutsNGum macrumors 68030

    NutsNGum

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    #5
    Hahahaha. Absolute hypocrites. Big company with a supposed social conscience contributing nothing to society.
     
  6. jaded-mandarin macrumors regular

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    #6
    0.005% - that is just disgusting.

    What a morally bankrupt outfit.
     
  7. Mac Rules macrumors 6502

    Mac Rules

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    Good news.

    Tax havens, non-resident companies, "licensing fees" are all tools used by companies and Governments to reduce their tax burden while the Average Joe has no chouce but to pay their dues.

    It's good to see steps towards putting fairness back into tax payments.
     
  8. Schranke macrumors 6502

    Schranke

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    #8
    expected, and even if Apple appeal the ruling I do not think it will change.
    I hope to see more of this kind of actions against both EU and foreigne companies.
     
  9. Cybbe macrumors 6502

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    #10
    http://europa.eu/rapid/press-release_IP-16-2923_en.htm

    I applaud this decision. I cannot see how paying 0.005 % in taxes is justified in any way.
     
  10. xDKP macrumors 65816

    xDKP

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    #11
    This is a deal Ireland has made for Apple - not Apple making a massive tax fraud. EU is interfering with the individual country tax system (to be honest I'm not in the details) which sounds a lot like many of the reasons The UK voted out.

    Nobody should cheat, but this sounds like it isn't on Apple (get presented with a good deal by a country and accepting it isn't a crime) but more like the country it self
     
  11. Michael Scrip macrumors 601

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    #12
    So will the EU go after all the other multinational corporations that do this too?

    Gotta get 'em all...

    ... just like Tim's Pokemans. :D
     
  12. matjamca macrumors regular

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    #13
    If I have to pay my fair share of tax, then so should everyone else. How is it fair otherwise?
     
  13. kissmo macrumors 6502a

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    #14
    Jonathan Ive will design the 13 billion EUR paper bill.
    Or maybe it ill be made of Aluminium or Glass.... Either wait the bill will be sold to auction for 26 Billion EUR and thus Apple will make a profit out of it.
     
  14. JosephAW macrumors 65816

    JosephAW

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    #15
    Apple Employees in Ireland should update on their résumés.
    Now's the time for the U.S. To offer an 8 year tax break and forgiveness in order to bring their money and jobs back to the states. A certain candidate should jump on it.
     
  15. matjamca macrumors regular

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    #16
    Ireland's Corporate Tax rate is 12.5%. Fine.

    But Apple paid just 1% or lower.
     
  16. Schranke macrumors 6502

    Schranke

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    #17
    The problem is that it is a crime, the lower taxes is illegal government founding.
    A company as big as Apple should not think that they could have a lower tax than literally all other companies in Ireland.
     
  17. dannys1 macrumors 68020

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    #18
    Funnily enough, Ireland themselves are appealing the ruling. They want the big companies there paying little to no tax, because 1% of something is better than 100% of nothing (plus all the jobs Apple brings to Ireland) - Ireland quite likes being a tax haven for big business.
     
  18. MarkusL macrumors 6502

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    #20
    I bet the bill will be too thin and bend.
     
  19. Mac Rules macrumors 6502

    Mac Rules

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    #21
    They have done nd will continue to do so.
     
  20. pavelbure macrumors 6502a

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  21. dannys1 macrumors 68020

    dannys1

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    #23
    Yes they are, Google and McDonalds are currently undergoing the same investigation.
     
  22. WBRacing macrumors 6502a

    WBRacing

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    #24
    From this last week, when the stock options came in:

    [​IMG]


    To this, this week:

    [​IMG]
     
  23. MH01 macrumors G4

    MH01

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    #25
    getting popcorn and waiting for Tim to confirm these are but the droids we are looking for....
     

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