“Apple says it is at risk of being hit with a higher tax rate and back taxes due to a recent ruling by European regulators,” Chris Isidore reports for CNNMoney.
“In the company’s annual financial report, released this week, Apple warned investors that ‘If the Company’s effective tax rates were to increase, particularly in the U.S. or Ireland…the company’s operating results, cash flows and financial condition could be adversely affected,'” Isidore reports. “Ireland announced earlier this month that it would end a key tax break for tech companies by 2020. But some experts say the change is more of a public relations move than a step that will significantly increase the taxes those companies have to pay.”
Read more in the full article here.
MacDailyNews Note: From Apple’s Form 10-K for FY14, the portion that Apple added this year over last, verbatim:
For example, in June 2014, the European Commission opened a formal investigation to examine whether decisions by the tax authorities in Ireland with regard to the corporate income tax to be paid by two of the Company’s Irish subsidiaries comply with European Union rules on state aid. If the European Commission were to take a final decision against Ireland, it could require changes to existing tax rulings that, in turn, could increase the Company’s taxes in the future. The European Commission could also require Ireland to recover from the Company past taxes reflective of the disallowed state aid.
Ireland to end tax lures that drew U.S. firms – October 14, 2014
EU tax probe spotlights Ireland’s allure for multinationals – October 13, 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
Time to take the business out of Ireland.
I am not sure if Ireland is worth buying. But, perhaps Apple should consider purchasing either part or all of a smaller country and take the country private. Move as much or everything they want to that new Apple sovereign territory. Could even offer great deals to help their sources develop some or all of their manufacturing in Apple’s territory. Perhaps an island with lots of sun!
Apple would be the first of several companies to dump governments. See the 1975 movie Rollerball. At some point, you have to get out of the swamp and pull off those leech parasite politicians!
Or, you know, help pay for your fair share for the infrastructure your company and its employees are using. Like every other company.
Or, you know, help pay for undeclared wars against imaginary enemies. Like every other company.
i have always wished i could personally review the tax records of people like you who pontificate on the subject.
You may not be aware of it, but in many municipalities companies don’t just pay their “fair share” (whatever that term may actually mean… just try to get any two people of different backgrounds to agree on the definition of the word fair)… they pay for that infrastructure entirely.
You are not helping.
Where to take the business to, which would be as good or better than it’s current place?
Move to Monaco. Im sure Albert would love to do business.
i would second that move: i lived in the principality for almost 9 years and would move back there if finances allowed.
Aye, sad laddies…..me lil’ leprechaun sheds a tear…..
Stress the difference between “may” and “will”.
It never ceases to amaze me about how so many people bitch about the rate of corporate income taxes and are not bothered that the US tethers it’s citizens like tax serfs no matter where they work and live. Expat Americans are screwed over on taxes & Medicare and never is there a peep heard.
Apple took advantage of an Irish law giving them a huge tax break and it profited them greatly- BFD. That seems to be going away as it should.
Companies- like individuals- should pay some reasonable amount in taxes. Apple benefits greatly from services and structure provided by government and paying taxes is part of the deal. Companies should not be milked like a cow for money, but neither should individuals.Despite being a Progressive, I oppose the idea that some working citizens are essentially exempted from income taxes via tax credits and rebates.
Where I have to disagree here is regarding foreign made profits. Apple pays US corporate tax on US profits. But why Apple has to pay ~34% taxes on foreign made profits is beyond sane comprehension. It’s a barrier to bringing that money home.
Ten Reasons Tim Cook Dominated Congress
Be sure to watch Rand Paul’s video, linked at the end of the article.
When companies game the system to take what are truly US profits and shelter them off-shore, I have no problems treating THAT income as regular income. But I agree that Apple should not have to pay US taxes on profits it truly earns in other countries.
The problem is it’s virtually impossible to tell where the money is really coming from when so many corporations use shell companies for the sole purpose of manipulating tax law and hiding a clear money trail.
Eliminate shell corporations and I have no problem reducing corporate tax rates.
there was no Federal Income Tax from 1789-1913…gee, how did we survive?
Tariffs and excise taxes.
I know…was rhetorical.
I know it was, but not everyone reading might know.
Tariffs and other forms of taxation.
Was that meant to be a trick question?
Good. Pay taxes like I do – happy to. But when I see companies getting these BS breaks, it pisses me off. Either do the work here and pay Americans, or pay the effin’ taxes here. But to do neither is wholly un-American. I love Apple. I love the free market. But you can’t not do either of those things and expect us to survive.
how is the extortion of American workers through coerced taxation to finance the US military machine an exercise in patriotism?
it’s not, by jingo!
hey stupid, if the money taxed and spent on the military/national “security” machine was spent on infrastructure, there would gold-plated faucets at every rest stop urinal.
sorry I bothered to disturb your coma.
In 1952, corporate income tax accounted for about a third of ALL federal tax revenue. Today, despite record high corporate profits, a record high stock market and obscene corporate salaries, corporate taxes bring in LESS THAN 10 PERCENT.
Guess who makes up the difference? The middle class.
It’s way past time for REAL tax reform.
Don’t believe me? Here’s a link:
my advice for those who die,
declare the pennies on your eyes.
Down with this sort of thing!
DON”T STEAL. The government hates competition.
So you’re saying that Americans should rise up and demand that the tax system be rewritten fairly? Oh yeah, right. Like that will ever happen.
If the U.S. government would LOWER corporate taxes, Apple would not feel compelled to find ways to keep its cash in other countries in order to get the tax benefits. Anyone who criticizes Apple for doing this should look again at their own tax returns and remove every deduction. And what the hell is this thing with the EU ruling on this issue? Isn’t Ireland a sovereign country? Piss on the EU.
Unfortunately there are too many companies like Starbucks who pay their workers the minimum wage. They expect the European governments to give their workers benefits and income support funds to make up their earnings to a ‘living wage’. To top it all they use crap EU laws to circumnavigate the payment of Corporate taxes in the countries where they make large profits.