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Apple Must Repay $14.5 Billion in Back Taxes, EU Commission Rules
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If anyone was wondering how much money Apple is stashing overseas, compared to others:
If anyone was wondering how much money Apple is stashing overseas, compared to others:
That really doesn't say much though, Apple just makes that much more money than all their competitors. It does show a trend that corporations will stash money abroad to avoid paying taxes. Something that should be put to an end.
And? Let's say you're a company and a salesman decide to scheme to reduce price for one, and one single customer, when the law organ above it will see it, both will be blamed and yes, the customer will probably have to pay back to the store if it was obvious it was illegal (and you don't have to be a genius to understand 0.005% tax is).
Ireland might be a country, but it's part of a much bigger thing, and thus cannot do as it wants when it's ruining competition both for other companies and for other countries who cannot simply reduce taxes as they please because they would rather follow the law.
Don't like it EU? Change your law...which you seem to have done, and made it retroactively applicable, which is as reprehensible as it gets. Sorry, but no company is ethically required to pay more than what the law demands. They do the unspeakably evil thing of providing profit to their shareholders who use the money to pay for other goods and services, which get taxed <roll eyes>.
Bottom line: Apple isn't being unethical: it is being smarter than the average bear. If we don't like it, we have a law-making system in place to change that. Nuf said.
Bottom line: Apple isn't being unethical: it is being smarter than the average bear. If we don't like it, we have a law-making system in place to change that. Nuf said.
And? And change the unfair law. My question is can a corporation be held retroactively in violation of it once it's changed.
No idea. But news that governmental institutions take their eyes off the ball when it comes to the welfare of their citizens generates in me a sadly small amount of surprise.
As I understand its not a "crime" by Apple. That "crime" is Ireland making the agreement and the EU.
Apple is caught up in a situation of their own making. If they repatriate those funds to the USA they will have to payIf anyone was wondering how much money Apple is stashing overseas, compared to others:
US corporate tax. They will be able to claim credit in the US for taxes they paid overseas on those earning. However, they in fact paid almost zero tax on those earning between the Irish deal and the Caribbean company. That means all of it will be liable to tax.
They will likely continue to borrow in the US to fund development knowing that they have this hugh cash pile. Those funds will never be repatriated to the US unless at some point they get a one time US tax break to bring the funds back at a peppercorn tax of say ten percent.
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I wish I understood where those of you suggesting that the EU change the law is getting that nonsense from. Nothing has changed except enforcement.
For many years it has been illegal for US individuals to have overseas bank accounts and not report them. Many were doing it for years and getting away with it and avoiding US taxes. A few years ago the US decided to enforce the law properly and went after the banks forcing them to disclose their customers. This is no different, no law has changed enforcement has changed.
None of that disagrees with what I said.
Here's a FAQ that includes a graphic from the EU that confirms what I said.
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That is the biggest load of bunk you can imagine.
The taxation system is supposed to be paying for the services that we all use. Your taxes helped cover the costs of laying roads and electrical grid that everyone uses. If everyone pays their share then the costs are not shifted to one party or group to the benefit of others. Do you think that Apple doesn't use the roads to have their iPhones and other products shipped around? Do you think they don't use the electrical grid in their operations? Yet according to your idea, as they are making money for the select few who have apple stocks, it's all right that they get to use the services without paying anything for them.
The problem is that greed has taken root. If Apple paid their taxes then the investor would not make nearly as much money. Sure the share holders would not have as much profit to spend, but on the equal side of the coin, the rest of the country would not have to shoulder the tax bill that Apple skarfed off on, and so they would now have a bit extra coin in their pocket to pay for other goods and services. The exact same money is in the equation, just the who has it changes. If you are a big investor, then the deal looks bad for you. if you are joe public, then you get a tax break and that is good. You can afford to buy that next new iPhone every two years rather than having to decide between new tech or if you eat tonight.
The most interesting bit from that article:
"Two years ago that worked out at €50 on every million in profit"
50 euro for every million in profit. That is so horribly and disgustingly wrong.
do you really believe that apple didnt know all the time what they were doing and had zero influence to get benefits?
what do you think what would happen if all countries could just start to make 0% procents deals with companies?
Europe doesn't innovate and doesn't make anything of value. However, they certainly enjoy their 30-hour work weeks and retiring at age 45. Extorting billions from a great American company must be an irresistible temptation.
Again, Apple didn't make a deal on their tax rate. They worked under Irish tax law to minimize the amount of profits that were allocated to Ireland. Most of the profits were essentially allocated to the U.S., since that is where the value is created. The trick is that the U.S. doesn't tax those profits until the funds are repatriated.
Yeah, I know... just looking at these numbers:
- List of killings by law enforcement officers in the United States, 2015 (listed: 427)
- List of killings by law enforcement officers in the United States, 2014 (listed: 630)
- List of killings by law enforcement officers in the United States, 2013 (listed: 343)
- List of killings by law enforcement officers in the United States, 2012 (listed: 608)
You are obviously not aware that the Processors in every iPhone and iPad are designed in Europe. You must also not be in a position to afford a great European car like a Benz, Bmw, Ferrari, Lambo, McLaren or many of the others from Europe.
Wow what a confused understanding. They did exactly the opposite they maximised their profits in Ireland by routing all their International income to Ireland. This got them the maximum benefit of the very low tax rate.
It's not a matter of belief. It's the facts of the case. Again, this is about profit allocation. Not tax rates.