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Apr 12, 2001
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Ireland may shut down a tax loophole that allowed Apple to avoid declaring itself a tax resident in any country, reports The Street.

Apple, which currently has multiple subsidiary companies in the Irish city of Cork (Apple Operations International (AOI) Apple Operations Europe, Apple Operations, Apple Sales International and Apple Distribution International), is able to move money around the world without tax penalties because companies managed and controlled abroad but located in Ireland are not subjected to taxes.
"The second measure to be included in the Finance Bill is a change to our company residence rules aimed at eliminating mismatches - that can exist between tax treaty partners in certain circumstances - being used to allow companies to be 'stateless' in terms of their place of tax residence," the country said in a press release on Tuesday.
Subsidiary Apple Operations International has come under scrutiny in recent months for exploiting the loophole, as it has received billions of dollars between 2009 and 2011, but paid no taxes to any government. According to Apple's own statement on the matter, AOI is incorporated in Ireland and therefore not a tax resident in the United States, but as it is controlled via the U.S., it does not meet the tax resident requirements in Ireland either.

According to Reuters, requiring companies to declare a tax residence will have little overall impact on Apple, as Ireland will allow companies to choose any country as a tax residence, including zero tax jurisdictions.
A spokesman for the Department of Finance declined to explain the change but denied it was due to U.S. pressure.

He added that companies could still nominate any country they liked as their tax residence, including zero tax jurisdictions such as Bermuda - a provision that tax advisers said was unusual internationally.
Earlier this year, Apple CEO Tim Cook testified in front of the U.S. Senate Permanent Subcommittee of Investigation following an accusation that the company avoided paying billions in federal taxes via "extensive tax-avoidance strategies."

During the hearing, Tim Cook insisted that Apple pays all of its taxes. "We pay all of the taxes we owe, every single dollar," he said. After an extensive investigation of Apple's finances and disclosure practices concluded in September, the U.S. Securities and Exchange Commission opted not to take any action against the company.

Apple has said that it plans to use its extensive foreign cash pile to invest abroad, creating additional Apple Stores overseas, expanding its iTunes Store, and boosting its international marketing.

Article Link: Ireland May End Apple Tax Residency Loophole
 

KPOM

macrumors P6
Oct 23, 2010
16,441
5,267
It could backfire. Ireland needs all the jobs it can get. While it might close some loopholes, they should be careful not to penalize companies with significant operations there.
 

Aye

macrumors regular
Sep 27, 2013
113
0
Of course, everyone wants some Apple money. A global phenomenon that keeps growing ...
 

NutsNGum

macrumors 68030
Jul 30, 2010
2,856
367
Glasgow, Scotland
It could backfire. Ireland needs all the jobs it can get. While it might close some loopholes, they should be careful not to penalize companies with significant operations there.

It's not penalising to prevent large corporations taking the piss out of the tax system.
 

Ryth

macrumors 68000
Apr 21, 2011
1,591
156
It's not just Apple in Ireland. Tons of corporations are there doing the same thing.

But hey, author is a hit you know what because of using Apple in the title.

Ireland better be careful or they might hurt themselves more then they think.

----------

Of course, everyone wants some Apple money. A global phenomenon that keeps growing ...

Because they actually have a product/business model that works unlike most countries and corporations.
 

cal6n

macrumors 68020
Jul 25, 2004
2,044
164
Gloucester, UK
And what about Google's avoidance of UK tax by "negotiating" advertising deals in the UK and "completing" the sales in Eire?
 

Pyrrhic Victory

macrumors regular
Feb 6, 2012
152
0
Income taxes are such an absolute joke, penalizing people and corporations for productivity. A tax on land ownership is infinitely more logical because it incentivizes maximally efficient use of all land rather than hoarding, squatting, etc.
 

vpro

macrumors 65816
Jun 8, 2012
1,195
65
Woah!

This could be MONUMENTAL - wow, so exciting these times are indeed GO Ireland I love you !!!!!!!!!!!!
 

alent1234

macrumors 603
Jun 19, 2009
5,688
170
the only reason US companies do this is because the US has the worst tax laws on the books. the US requires companies to pay taxes on profits earned outside the US that have already been taxed by other governments. almost as bad as the russian tax laws but no swat team breaking down your door to take your money
 

bbeagle

macrumors 68040
Oct 19, 2010
3,442
2,737
Buffalo, NY
And what about Google's avoidance of UK tax by "negotiating" advertising deals in the UK and "completing" the sales in Eire?

Google, Microsoft, Facebook, Oracle, Adobe .... all use the same scheme in Ireland as Apple does to avoid taxes.
 

vpro

macrumors 65816
Jun 8, 2012
1,195
65
Umm...

Income taxes are such an absolute joke, penalizing people and corporations for productivity. A tax on land ownership is infinitely more logical because it incentivizes maximally efficient use of all land rather than hoarding, squatting, etc.

If you are ah, making squat then yes income taxes makes absolutely no sense, you wont be taxed if you are on the brink of poverty, it means you're prolly cleaning toilets or picking up garbage, or in a warehouse packing sneakers or packing salad mixes for corporate clients. That is just inhumane, BUT however ah, if you are a gigantic income hog and you make well over a billion in profit each year just sitting on clean toilet thrones, then uh, ya, I think you should pay the fair share of a gigantic size tax, absolutely! :)
 

The Mercurian

macrumors 68020
Mar 17, 2012
2,095
2,362
Our nation is broke so "lets tax Apple Inc."

Should not all companies pay tax ?
Fact is Apple paid only 2% tax on 100million. The Irish corporate tax rate is 12.5% - lower than most of Europe. Apple, Amazon, Starbucks, Google and others have manipulated international laws to avoid tax. This needs to stop.

Ireland stepping up to the plate. What are the rest of the countries doing ?
 
A multi billion dollar corporation should be paying ****in tax. Simple as that. Sheeple should understand they are taking the piss and realise that. We all pay tax and we get ripped off so why shouldnt Apple pay there dues? I like Apple dont get me wrong but when Im paying considerable taxes on my wages and they arent then its time to act. Its a question of fairness. Dont let fanboyism get in the road of that.
 

xlii

macrumors 68000
Sep 19, 2006
1,863
120
Millis, Massachusetts
They wouldn't dare if Steve was still CEO. Let's see... Apple would be out of Ireland in a week and if an Irish citizen wanted to buy an Apple product they would need to travel to the continent... and it would cost them double.
 

Ichabod.

macrumors regular
Oct 1, 2012
122
1
If Ireland "ends the tax loophole," all the companies that 'operate out of Ireland' will simply leave, to a more favorable tax climate*, leaving Ireland worse-off.

*- presuming one exists. I'm not too familiar with international tax laws, but I am sure Apple has contingency plans for this.
 

Rocco83

macrumors 6502
Jul 3, 2011
275
309
Ohio
I really wish Apple has to start paying all that tax to the US and even has to pay back taxes to the US so our government can use it for wage increases for president, congress, and house members as they are doing such a wonderful job.

What money is left over can go into a fund the government can use to help create more technology and software to intrude into its citizen's lives.

I know that money would be much better in the hands of our government rather than waiting in the banks of a company like Apple that may very well be used to pay for the R&D of a revolutionary new piece of tech.
 
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