“Bank of New York Mellon Corp. won a contract to be custodian for as much as 13 billion euros ($16 billion) in back taxes that Apple Inc. will pay to Ireland, according to a person familiar with the matter,” Dara Doyle and Peter Flanagan report for Bloomberg.
“The Irish government chose Bank of New York Mellon as custodian while the money is held in escrow pending an appeal by Apple and Ireland against a European Union tax ruling, the person said, asking not to be identified because the information isn’t public,” Doyle and Flanagan report. “The government hasn’t yet named an investment manager for the funds.”
“While Apple and Ireland appeal the decision, regulators demanded that Ireland hold the money in escrow until the process is complete,” Doyle and Flanagan report. “The appeal may take as long as five years.”
Read more in the full article here.
MacDailyNews Take: The farce is with EU.
What the Commission is doing here is a disgrace for European citizens, it should be ashamed. – Apple CFO Luca Maestri, December 2016
Anyone who decides to set up a business in a European Union vassal state today is insane. — MacDailyNews, December 2016
SEE ALSO:
EU says Ireland’s Apple complaint will only be dropped if it takes the full $16 billion in tax clawbacks – February 27, 2018
Ireland expects final disputed Apple bill remaining around $16 billion – February 22, 2018
EU court rejects U.S. government intervention in Apple’s Irish $15 billion tax case – December 15, 2017
EU sues Ireland over $15.3 billion tax clawback from Apple – October 4, 2017
Ireland opposes EU’s 13 billion euro Apple tax grab, calls it unjustified – August 17, 2017
Apple close to deal protecting Ireland in fight over EU tax grab – August 11, 2017
Ireland seeks custodian for Apple $15.2 billion in back taxes as collection nears – July 22, 2017
EU Commissioner Vestager: Ireland ‘taking too long’ to recover Apple tax – May 19, 2017
EU’s hypocritical Margrethe Vestager going after Apple while backing Madeira tax avoidance scheme – February 14, 2017
Apple has missed the deadline to pay $13.9 billion to Ireland in illegal tax benefits – January 31, 2017
Apple CFO Maestri: What the EC is doing here is a disgrace for European citizens, it should be ashamed’ – December 19, 2016
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
It’s all about liquidity these days. Apple’s billions are guarded? More likely used as needed to grease the wheels of the banking systems with hopes they never stop turning. The next crash is going to be epic.
“The European Commission has concluded that Ireland granted undue tax benefits of up to €13 billion to Apple. This is illegal under EU state aid rules, because it allowed Apple to pay substantially less tax than other businesses. Ireland must now recover the illegal aid.
Commissioner Margrethe Vestager, in charge of competition policy, said: “Member States cannot give tax benefits to selected companies – this is illegal under EU state aid rules. The Commission’s investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years. In fact, this selective treatment allowed Apple to pay an effective corporate tax rate of 1 per cent on its European profits in 2003 down to 0.005 per cent in 2014.”
“In fact, the tax treatment in Ireland enabled Apple to avoid taxation on almost all profits generated by sales of Apple products in the entire EU Single Market. This is due to Apple’s decision to record all sales in Ireland rather than in the countries where the products were sold. This structure is however outside the remit of EU state aid control. If other countries were to require Apple to pay more tax on profits of the two companies over the same period under their national taxation rules, this would reduce the amount to be recovered by Ireland.”
The EU is The Fourth Reich…the invading muslim stench will be their “army.”
“EU countries agree to create a European mega-army”
http://www.businessinsider.com/eu-countries-agree-mega-army-2017-11
MDN and supporters:
What specifically is the problen with this EU ruling?
Oh wait, you actually have no answer because you blindly follow a for profit American corporation.
Apple got special treatment under the law. Ireland is at fault for breaking the tax code under the EU. Apple is also at fault because they knew or ought to have known they were breaking the law. Both parties colluded together.
If this was all allowed, then certain businesses would get an advantage over others and create an unfair competitive framework.
The law is as it is here too. Apple is simply a freerider in this sense.
The ruling is sound.
I’m refraining from leaning one side or another until the appeals are all done and the fat lady sings so to speak and that is going to take years. I’m good with it either way.
That being said, you make some good points, especially pointing out the self righteous Apple’s home nation.
Wow. “blindly follow…”?
Besides that fact that the it is more Margrethe Vestager than the EU that is attacking all US corporations that have money (not just Apple), that her attack was retroactive and probably illegal, that Ireland as a sovereign state signed agreements prior to the formation of the EU, that neither Ireland or the EU have a legitimate claim to any funds arising from ‘intellectual property’ that the tax is actually based on, that Apple has reserved money in annual reporting for ‘tax’ that belongs to the US that might actually be returned to the US with a lowered corporate rate, and that Apple absolutely followed the laws that many countries have in place for corporations…
well besides these and others, well nothing is wrong with the EU ruling. I suggest, at the risk of unintentionally offending you, that you go back to your Apple hating haven, and stop with the trolling. I think we can all come back in 5 years and see how the appeal went. I hope Apple is successful once the case is examined by legitimate courts.
The law changes according to the advantageous needs or whims of the nation or union of nations that write them. In the meantime, Apple is adhering to its fiduciary responsibilities to its corporate governance by following the law, just at Cook says.
“… blindly follow a for profit American corporation.”
I guess you socialists have nothing but non-profit companies, eh?
Hey MDN,
Please have products quit stalking me here with stuff I looked up elsewhere having nothing to do with MDN or topics you cover or I address and respond to.
Wait till next year, they won’t be able to pay for a pity
Party… I can’t wait to see how many European companies in the US will suffer under our laws which will be enacted here