“Though Ireland is set to close its tax loopholes in January of next year, the changes won’t be applied to Apple and others until 2020, resulting in a ‘relatively neutral’ outcome for AAPL shareholders, investment firm Barclays said this week,” Neil Hughes reports for AppleInsider.
“Analyst Ben A. Reitzes characterized the upcoming changes to close the so-called ‘Double Irish’ tax loophole as a ‘minor issue’ for Apple. With the effect coming in 2020, he said the temporary relief balances against slightly lower long-term earnings power,” Hughes reports. “The “Double Irish” provision allows companies with operations in Ireland to route profits to another Irish subsidiary, which has tax residency in a tax-free nation, such as the Cayman Islands… With the “Double Irish” issue apparently addressed, Reitzes seemed more concerned as to whether the European Union would decide to impose a fine on Apple and others for its tax strategies.”
“After the EU investigation into Apple was announced earlier this year, the company responded this week and denied dodging EU tax laws or receiving special treatment from Irish authorities. The iPhone maker said it ‘pays every euro of every tax’ that it owes,” Hughes reports. “Barclays has maintained its ‘overweight’ rating for AAPL stock with a price target of $116.”
Read more in the full article here.
MacDailyNews Take: If Apple operated legally, which they’ve repeatedly said they did, how can the EU legally impose any fines? The EU can’t fine for a future rule change set to hit in 2020, can they?
If they do — and perhaps even if they don’t, based simply on the demagoguery already heaped upon Apple by the EU — then Apple should pull out of Ireland and fully set up shop in the Caymans or wherever the EU doesn’t exist and where the tax situation is most favorable to Apple.
Ireland to end tax lures that drew U.S. firms – October 14, 2014
EU watchdog to give reasons for inquiry into Ireland’s tax treatment of Apple – September 29, 2014
European Commission accuses Apple of prospering from illegal Irish tax deals – September 28, 2014
EU threatens expanded probe into Ireland’s tax practices regarding Apple, Googles, other companies – June 20, 2014
EU’s investigation of Apple’s taxes isn’t going to cause the company any problems – June 13, 2014
EU launches tax avoidance investigations on Apple, Starbucks, Fiat – June 11, 2014
Not in Taxes anymore: On site at Apple’s famous Irish ‘headquarters’ – November 2, 2013
Regan: U.S. tax code spurs loveless foreign corporate ‘marriages’ – May 13, 2014
Ireland to close Apple’s tax loophole, but leave bigger one open – October 15, 2013
G20 think tank OECD proposes blueprint for global crackdown on tax avoidance – July 19, 2013
Thomas Sowell on Apple, corporate taxes, and ‘the road to serfdom’ – May 28, 2013
Taxing Apple just taxes you – May 24, 2013
Don’t tax Apple, tax its shareholders – May 24, 2013
If Apple paid more tax, we might pay less or something – May 22, 2013
Apple CEO Tim Cook pounds another nail into the Keynesian coffin – May 22, 2013
Apple CEO Cook makes no apology for company’s tax strategy – May 22, 2013