“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.
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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
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Thomas Sowell on Apple, corporate taxes, and ‘the road to serfdom’ – May 28, 2013
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