“The European Commission’s estimate that Apple owes Ireland up to 13 billion euros ($14 billion) in a disputed tax ruling is unlikely to be altered greatly by Dublin’s calculations, the Irish finance minister said on Thursday,” Padraic Halpin reports for Reuters.
“The Commission ordered Apple to pay Ireland the unpaid taxes after ruling in August that the iPhone maker won sweetheart tax deals from Dublin amounting to illegal state aid,” Halpin reports. “The Irish government and Apple have appealed the demand.”
“‘So far my officials haven’t indicated to me that it’s going to seriously overrun the 13 (billion euros) or come seriously short of the 13, but there are other years to be assessed and so on,’ Finance Minister Michael Noonan told a parliamentary committee, referring to the 10-year period the calculations are based on,” Halpin reports. “Noonan said Irish officials were still negotiating the terms of a ring-fenced escrow fund where the back taxes will be held pending the outcome of the appeals process, which the Irish government has said could take four or five years.”
Read more in the full article here.
MacDailyNews Take: The EU’s antitrust commissioner, Margrethe Vestager, is a fool.
Anyone who decides to set up a business in a European Union member country today is insane. — MacDailyNews, August 30, 2016
SEE ALSO:
Apple has missed the deadline to pay $13.9 billion to Ireland in illegal tax benefits – January 31, 2017
Apple’s EU tax nemesis Margrethe Vestager takes aim at other U.S. companies’ offshore profits – September 19, 2016
The ‘Brexit-Apple’ connection: What in the world was Margrethe Vestager thinking? – September 12, 2016
EU ministers line up to take tax bites out of Apple – September 12, 2016
Former EU competition commissioner: Vestager claim that Apple owes back taxes an incorrect use of EU law – September 2, 2016
Irish government to fight EU on Apple tax – September 2, 2016
Treasury accuses EU of trying to steal U.S. tax revenues with Apple decision – September 1, 2016
Irish residents opposed to EU’s tax demand of Apple – September 1, 2016
Apple Inc. pushes back against EU tax grab – September 1, 2016
Apple may repatriate billions of dollars next year after new U.S. President takes office – September 1, 2016
U.S. tax code allows for dramatic retaliation against EU overreach in Apple case – September 1, 2016
Apple CEO Tim Cook on EU tax demand: ‘No one did anything wrong here and Ireland is being picked on… It is total political crap’ – September 1, 2016
U.S. Treasury: The European Commission’s retroactive tax demands on Apple are unfair – August 30, 2016
EU demands Apple pay massive $14.5 billion in taxes plus interest – August 30, 2016
U.S. government warns EU: Do not hit Apple with a massive back tax bill – or else – August 25, 2016
Dublin agrees with the EU? Why are they appealing, together with Apple, then?
They are saying that the amount is not in dispute, just whether it is actually owed. I don’t think Apple has a problem with the number, either.
It sounds like there is general agreement on the total amount in question based upon the EU’s definition of the fair tax rate as opposed to the tax rate that Ireland imposed on Apple during the 10-year period in question.
However, Ireland still disputes the EU’s attempt to override their tax laws and arrangements and impose an EU standard. Based upon what I am reading, Ireland is saying, “We do not agree with the EU ruling in this case. However, if you calculate the taxes owed under the EU guidelines, then the total appears to be close to the EU’s original claim of $13B.”
Correction 13B euros, not dollars! I am too accustomed to typing “$” in front of currency.
The Irish will roll over for 14 billion, just a matter of time.
I’d move. But where?
Apple sells 30 bln worth of stuff in the USA and pays some 20% tax.
Apple sells 15bln worth of stuff in the EU and the EU says it should pay standard Irish tax of 12.5% instead of a special deal 1%.
Where’s the problem?
Problem? It is determining ‘what’ Apple should fairly pay in EU as tax, on the profit generated by the sale of devices in which the intellectual property is created and based solely in California. The EU is not afraid to ignore legal tax agreements made with Ireland prior even to EU formation, nor current international tax conventions, to get at Apple’s pot of gold – that rightfully belongs to the US.
But apart from that, no problem at all.
1. I think the pot of gold belongs to Apple, not the US. Until and unless it comes back to America, the US has no claim on it. If conditions make the US an unsuitable climate for conducting international business, it may never be repatriated and the US will be owed nothing.
2. The EU is not trying to get at that pot of gold. The tax would be paid to Ireland, which does not want the money. The EU budget would not receive a material benefit.
3. The tax agreements in question were made well after Ireland joined the European Economic Community (Common Market), which later became the EU, so they have always been subject to European law.
Just to make it clear—I don’t think Apple owes the money, but that doesn’t mean that anyone should be shading the facts just to make points against the EU.
1. No money is owed to US until it comes back but Apple was always expecting to return the money at some point, and has filed that a portion of the 200+ billion is held to pay eventual taxes. Of course Apple would not bring this money to the US until a more favorable corporate tax rate or tax holiday at low rate was announced.
2. The EU itself could not take the money but the EU has stated that there may be claims made on the money paid by Apple to Ireland by other member states. The EU has been targeting other US companies as well. Ireland certainly wants and could use the money, but the long term price is too high.
2. The European Union was formally established when the Maastricht Treaty came into force on 1 November 1993. Apple made the first ‘deal’ with the Irish government in 1991. You do the math.
Are part of Margrethe Vestager’s fan club? LOL . That would make sense.
Just to make it clear – I don’t think Apple owes the money, but that doesn’t mean I think the EU is acting fairly in this case.
There is none.
The problem is that ……….well let me explain. This is bordering on the kind of time when a child comes to an adult and ask’s. “How are babies made?” In this case of tax, all adults know that when a city wants to become more civilized and modern and wants its people to have better jobs, it attracts someone like Apple. In order to attract such a business, Ireland has to have some “attracting attributes”. Such as very low tax rates. It’s a kind of a two way process. To later charge a much larger so is play zero views thi you normally will you please signal here go is no worries is 48 so for the voltag this is number since I was current system isWill be something
the point is simply that in the EU state subventions to industrial companies are not allowed.
the EU sees in this kind of tax agreements a hidden form of subventions and are not willing to allow this. it’s not a matter of money, it’s a matter of principles.
one can of course start a discussion whether Apple needs this kind of subvention …