Apple to Begin Paying $16 Billion to Ireland Around March Amid Legal Battle With European Commission

[The Mercurian]

If Apple had paid the 12.5 Corporate tax rate of island there would be no dispute. Apple paid something like 2 percent.

Exactly that is what this is all about the Irish government have been told to recoup the other 10.5% = €13billion.
I think they actually paid sometihng like 0.05% though.

How hard is it??

Corporation tax is payable on ANY sales made in this country by somebody residing in this country despite if in store or online. Any company caught trying to manipulate this will face a fine equivalent to 50% of its annual turnover in that year. It’s really really simple.

Sorry how hard is what? I don't follow your point here. Also which country are you talking about.

 

[Substance90]

Did you read the article? Do you pay taxes you're not required to pay?

Do the tax authorities offer you and only you a special offer of paying 2500% less taxes than anyone else?

 

[Jsameds]

The people who shout the loudest about corporations "not paying" their taxes would be the first ones in line to accept a tax break from the government.

 

[H2SO4]

Haha, no, that's not it. The insulting part is when people assume things as you just did by saying, "They made a dodgy deal". This portrays something that is non-factual. It's OK - no biggie, the world is full of biased opinions and ignorance, and we all can say whatever we want I guess.
[doublepost=1516332270][/doublepost]

So - ask how that can possibly happen. No explanation? No reason?
[doublepost=1516333474][/doublepost]


That sounds plausible. Finally some thought here.

Apple doesn't break tax laws, haha. No way. They always play by the rules - way more so than any other corporations in my opinion. They may have set up in Ireland because of some incentives or strategic advantages. Irish citizens probably got jobs! Ireland is probably very happy to have Apple there.

Lets see if Georgia or Florida or Mississippi or North Carolina people want the next Apple Campus right? Do you think 20 years from now these states will try to claw back taxes if Apple gets an incentive to locate in a particular state in 2018?

People want jobs, Apple needs to choose where to set up shop. WTF were they doing in Ireland anyways haha - ever consider that? They went there just "out of the blue?" Now some folks are gonna spew their misguided stereotypes of corporate greed and dodging taxes and talk of "just pay your taxes". Same folks didn't understand just how much good Mnuchin and Trump are doing for the US economy by cutting taxes. Things are getting better faster because of Trump Tax Cuts - so give it some thought in a few years when you are able to buy that new car or house or whatever. It really IS "trickle down" economics coming your way perhaps - if I may use the term loosely.


Also I should mention I had a few drinks celebrating AAPL all time high, so sorry for typing so much here!

However far fetched, you just did the same thing. You assumed I don't have any evidence did you not?

 

[827538]

It's absolutely ridiculous that this happened. Ireland should be punished for this, they basically gave Apple a free pass on paying taxes that should have been paid in the countries where they made the money.

Apple's biggest EU market is the UK, yet when they get caught and get told to pay their taxes the taxes are paid to Ireland. This is a huge European issue that needs tackled, why are countries allowed to base themselves in places like Luxembourg, make billions in profits in major EU states like the UK, Germany and France then post their profits in tiny micro states with next to no taxation? It's disgusting and unfair. I'd love to earn my money in the UK and pay my taxes elsewhere, why are multinational corporations treated differently? Same BS with the likes of Starbucks and Amazon.

 

[SarcasticJoe]

Weird, you don't take any deductions? Because this is essentially all Apple is doing at their scale. Following the laws and minimizing their tax burden.

The problem here is that this is not a legal deduction or loophole, it was Apple and the Irish government making a deal where Apple had to pay next to nothing in taxes when they brought in all of the profits from their sales within the EU.

I know the way that the EU functions can be rather difficult to understand, but I'll try to explain the parts relevant to this in a way that's as easily understandable as I can:

One of the founding pillars of the EU, going back to it's predecessor organisations, is to promote trade between it's member state trough creating something called a "common market" for the member states. One of the principles of this common market is to make trade across borders between countries as easy as possible trough a harmonisation of laws and regulations. This is what EU critics are referring to when they talk about how the EU has regulations for the silliest things.

Another part of this harmonisation is that companies can sell products and services across country borders without having the massive hassle of paying loads of different tax rates on their profits in loads of different countries. The purpose of this is to make life easier for companies who want to sell products and services across borders and thus promote trade within the common market. However this comes with the that risk that countries will to try to give local companies or those operating within country's borders an unfair advantage by charging them no or very little tax. Another potential problem is that a country could become simply try to become a tax haven.

To solve this the EU bans member states from making company specific tax deals so countries can technically still provide low taxes, but they have to provide them to all companies operating within the country and thus tank their tax revenues. This is very clearly stipulated in the treaties member states have to ratify before they can join the EU and thus the common market.

Now what happened here is that Ireland and Apple did just this. Ireland allowed Apple to sell products to the EU while paying next to no tax on their profits from doing so and thus gave Apple an unfair competitive edge compared to other companies. Both Ireland and Apple knew this was against EU regulations so they made this deal secret in an effort to keep it hidden from the EU.

Oh and to counter the repeated claim that EU is just looking for a handout, this is just so wrong it's not even funny. The EU is not telling Apple to pay them a single penny, they're telling Apple to pay Ireland the taxes they should have paid in the first place. None of the money Apple is being told to pony up is to the EU. As for why Ireland is trying to fight this, it's part that they don't want to lose face (which would make other companies in the country and those planning to set up there jittery as Ireland has sold itself as a low-tax common market country for quite a while) and part still trying to keep their end of the (secret) deal with Apple.

 

[PJL500]

Ireland have never been wealthier in their history, and it's all due to these tax breaks. They were beating the crap out of other countries when it came to business-friendliness. But other broke EU countries have what always exist in the progressive mindset - envy.

Ireland should do a Irexit from the EU. Why should a country subjugate itself into the whims of unelected officials in Brussels?

The EU has been a huge boon for Ireland. Over the past quarter century roads and other infrastructure were financed by the EU to help create a vibrant economy. There are no whims - there is an EU Parliament which is democratically elected and makes laws to protect EU citizens. The EU has been a huge success with some problems on the way.... and more to come... as is the case with all economies modeled on capitalism. Look at the sprawling poverty and crumbling infrastructure in the US. We cannot come up with a better system.

 

[charlituna]

Stop crying and pay your ****ing taxes like I PROPERLY do every year.

that's the thing, they did. At least according to Ireland who says that Apple wasn't given any kind of concession that any other company of their size, etc wouldn't also be offered. But the EU decided otherwise and demanded that Apple pay the money.

 

[Macs4u]

Exactly that is what this is all about the Irish government have been told to recoup the other 10.5% = €13billion.
I think they actually paid sometihng like 0.05% though.



Sorry how hard is what? I don't follow your point here. Also which country are you talking about.

How hard is it to implement!! Is my post so hard to understand?? You sell a phone in the UK , you pay corporation tax on it in the UK , you sell a phone in India , you pay corporation tax on it in India and so on. Doesn't matter where its made , where the research was done etc , you are selling to a customer in a country that is entitled to collect tax on your profit.

 

[The Mercurian]

How hard is it??

Corporation tax is payable on ANY sales made in this country by somebody residing in this country despite if in store or online. Any company caught trying to manipulate this will face a fine equivalent to 50% of its annual turnover in that year. It’s really really simple.

How hard is it to implement!! Is my post so hard to understand?? You sell a phone in the UK , you pay corporation tax on it in the UK , you sell a phone in India , you pay corporation tax on it in India and so on. Doesn't matter where its made , where the research was done etc , you are selling to a customer in a country that is entitled to collect tax on your profit.

Pretty hard to understand. For one thing you are confusing VAT and tax on corporate profits (VAT is paid on Apple sale in Ireland at 21.5%). For another you don't seem to grasp that different countries have different rules. For a third - the Irish tax authorities maintain Apple are obeying the rules (that they set). Europe disagree with them. Its quite a bit more complicated than you seem to grasp.