Tax policy changes requires unanimous consent from the countries. That is why attempts to push harmonisation of tax rates go nowhere. I think usually the UK also opposes it. With them gone Ireland will be more vulnerable to being bullied into it but for now even the commission press release pretends this isn't about Irelands tax rate or about which country EU based sales are booked in. Logically EU based sales should be booked in the country they happen in and taxed there but that gets in the way of the single market nirvana EU technocrats are trying to push.
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Report Says U.S. Government Filed to Intervene in Apple's Tax Appeal in Europe
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Tax policy changes requires unanimous consent from the countries. That is why attempts to push harmonisation of tax rates go nowhere. I think usually the UK also opposes it. With them gone Ireland will be more vulnerable to being bullied into it but for now even the commission press release pretends this isn't about Irelands tax rate or about which country EU based sales are booked in. Logically EU based sales should be booked in the country they happen in and taxed there but that gets in the way of the single market nirvana EU technocrats are trying to push.
Yep, Bexit was a bad bad result, I feel it already (in business myself but not exports), I sense Business confidence is Low in the UK.
Governments in other countries also get the EU stick after giving some kind of illegal subsidy.
Yes, if it solely concerns that company. The EU does not prohibit state aid. Member states are allowed to use public funds and selective tax incentives, but for economic development only. On condition that this happens for that reason and does not hinder intra-EU competition. Moreover, the EU itself has many grants and funds to help economically underdeveloped areas across the EU, from which Ireland already benefits. Ireland has many tools at its disposal to make the country an attractive base for companies. It can invest in infrastructure, housing and education, for example.
State aid is state aid. The arrangement is exploitive of other EU countries and no matter what you say there is no way other EU countries will tolerate it. It's a lost cause to for Apple to try to appeal.
For example, the EU determined that some help given in Spain to a couple football clubs was illegal and demanded that they pay it back.
Well then Apple Inc and Taoiseach were in the wrong and Apple should couch up the tax owing, rules are rules.
Global trade is one shady area and every conglomerate plans to keep it that way. They are the first to tell you there will be no borders how and where they conduct business and how that would benefit us all, but then they are the first to draw the borders when it comes to determining their msrp per country and region.
One day there will have to be fair trade agreement which would mean same msrp across all the markets around the world. And parent company will pay all the taxes in the land they incorporated just like US citizens pay taxes to US no matter where they work around the world. As soon as there is reasonable connection established between parent company and look alike company anywhere else, all the profits are taxable in parent country as well as operating country, pretty much double taxation to discourage this type of crap going on right now.
Another big step is for the world to recognize legal company no matter where its incorporated, this would mean that your business would be allowed to do business in Ireland without a need to setup a separate entity. I would personally ban the possibility of a company owning another company, they can merge and do business as one entity but doing business in multiple entities is a no go. Only actual humans or cats could be owners of multiple independent business across the world.
One day there will have to be fair trade agreement which would mean same msrp across all the markets around the world. And parent company will pay all the taxes in the land they incorporated just like US citizens pay taxes to US no matter where they work around the world. As soon as there is reasonable connection established between parent company and look alike company anywhere else, all the profits are taxable in parent country as well as operating country, pretty much double taxation to discourage this type of crap going on right now.
Another big step is for the world to recognize legal company no matter where its incorporated, this would mean that your business would be allowed to do business in Ireland without a need to setup a separate entity. I would personally ban the possibility of a company owning another company, they can merge and do business as one entity but doing business in multiple entities is a no go. Only actual humans or cats could be owners of multiple independent business across the world.
I think these Companies will always have off shoots.
I mean Sir Richard Branson has 250+ Virgin 'this and that' Limited Liability Companies and he's happy as Larry now on Necter Island with a 4B fortune.
He is a Sir so it must be Okay to do it?
(it = tax dodge.)
Posts like this gloss over the fact that what Apple did was not only morally wrong, but potentially unlawful.
By your logic; if "they are all up to it", then why does this only include billion dollar companies? It's a smack in the face to all the entrepreneurs, startups and smaller enterprises that may make less in one year than what Craig Federighi spends on his annual haircuts.
As I said, after that post, if Apple Inc and the Irish goverment have broken the EU Law then shame on them, Apple should pay the bill , Taoiseach should hang their heads in shame and be smacked with a fine also.
Apple is a global company, most of their revenue comes from outside of the U.S., why should it pay taxes on that part in the states?
I am originally form the country of Shell, Unilever,ASML and Phillips amongst others, do I claim those companies because they were once a local company, if those companies paid all their taxes on all of their revenue this country would be the richest country by far.
the reason the Netherlands does not tax on Worldwide income is because it does not have the quod pro quo of the threat of military force to protect its companies subsidiaries abroad...
Note that the USA taxes upon repatriation of the money for companies (and I think upon earnings for individuals). Thus Apple has huge capital outside the USA to avoid paying USA'S taxes.
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That's the problem. Only Apple got the deal of less than 1% tax rate in Ireland. All other companies in Ireland had to pay about 12%.
Um, its to do with Apple stricking a dodgy deal - BTW Apple's Lawers should have known about this POOR advise Apple (fire your Lawyers) - its about a doggy deal struck within EU duristiction.
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This Apple case is not about companies, because it is Ireland who broke the rules, and it was Apple who they broke it with, but the EU goes after Ireland as it should, but Apple is trying to stop themselves paying the taxes owed.
Either way, if Apple truly really wants to take on the EU wrath so be it.. it'll be interesting to see them ripped apart by the EU as they are NOT afraid to punish, heavily, giant corporations no matter who they are.
Simply, no. Again, maybe the law should be different. But they pay all the taxes in the United States that they are required to pay. Is some of their capital held offshore purely to avoid taxes? Possibly. Make a new law requiring them to repatriate all money made offshore? How much money should they keep offshore? I imagine enough to support operations in other countries, pay salaries, etc. Once your money is in China, for example, and you have ongoing operations in that country, year over year, should that money go home to sleep every year in Cupertino, pay its taxes, and return to pay its taxes in China? It is up around the most valuable company in the world. It does business in a bewildering number. The "Country Selector" on the Apple site gives us this many with a web presence, but that's nothing like the number of places you can buy an iPhone in.
https://www.apple.com/shop/browse/open/country_selector
Umm yeah. That's usually how tax works.. the more you make, the more you pay. Apple knows how to hide/shield money. Yes, they do it legally, mostly, and just take advantage of dumb laws designed to help corporations. The Ireland situation is pure insanity.
They make their computers in China, keep hundreds of billions outside of the USA, get great deals with Ireland, and yet their products are the most expensive out there. Based on all of that, they would have to go out of business if they ever moved to US production, simply because they would price a MacBook Pro @ $5k, and nobody would buy it.
It's ironic how we as the consumer pay the "Apple Tax" and Apple does everything they can to avoid paying taxes.
Avoiding taxes is just about one of the most moral things you can do.