“Piper Jaffray’s Gene Munster today contemplates the prospect Apple might have to pay billions in taxes if its Ireland arrangement is successfully challenged by the Europe Union,” Tiernan Ray reports for Investor’s Business Daily. “At issue is an investigation by the EU’s competition enforcer, Margrethe Vestager.”
Multiple news sources on Monday reported that European Competition Commissioner Margrethe Vestager said its Apple’s tax investigation would take more time given the amount of data to process. She did not give a timeline for the resolution for the case. In January, Bloomberg reported that Apple could face back taxes of ~$8B. We note this would represent about 13% of CY16E operating income. Overall, it remains unclear when, or even if, Apple will be subject to a penalty from the EU and we believe that investors are not concerned about the penalty. – Gene Munster, Piper Jaffray analyst
Read more in the full article here.
MacDailyNews Take: Again, Apple simply followed the law when paying their taxes:
There was no special deal that we cut with Ireland. We simply followed the laws in the country over the 35 years that we have been in Ireland. If the question is, was there ever a ‘quid pro quo’ that we were trying to strike with the Irish government – that was never the case. We’ve always been very transparent with the Irish government that we wanted to be a good corporate citizen… If countries change the tax laws, we will abide by the new laws and we will pay taxes according to those laws. – Apple CFO Luca Maestri
SEE ALSO:
EU’s Vestager says will not complete tax inquiries of Apple, others in second quarter – May 5, 2015
U.S. demands EU reconsider tax probes of its companies – February 12, 2016
U.S. Treasury official to meet EU antitrust team over Apple tax deals – January 29, 2016
Apple and Google stand by Europe tax deals; Rupert Murdoch weighs in – January 27, 2016
Apple could trigger global tax war, potential breakdown of the international tax system – January 27, 2016
Apple CEO Cook lobbies EU antitrust chief over Irish back taxes – January 21, 2016
Think Ireland’s corporate tax is unfair? Wave goodbye to Apple and thousands of jobs if it’s changed – November 14, 2015
Apple announces 1,000 new jobs in Ireland as EU tax ruling nears – November 11, 2015
Apple tax probe won’t hurt Ireland, Finance Minister Noonan says – October 5, 2015
EU’s Vestager says will not complete tax inquiries of Apple, others in second quarter – May 5, 2015
Apple warns of potential ‘material’ financial damage from European tax probe – April 29, 2015
Apple may have to pay Ireland 10 years of back taxes – April 30, 2015
EU’s plans to tackle corporate tax avoidance hits first roadblocks — February 12, 2015
Ireland’s Prime Minister: Apple has nothing to fear from end of ‘Double Irish’ tax avoidance strategy – November 4, 2014
Fuck the investors.
Play fair or get lost;
the richest Company on this planet…
I have nothing good to say about the new Apple.
Then why are you here asshole.
agree – this assholieo Bibo has some serious issues with his hate love apple world he lives in! does he realize how many jobs Apple create around the world and pays one of the most tax worldwide…
http://finance.yahoo.com/news/companies-paying-most-taxes-174550448.html
You are just not willing to understand that you are way too religious with your Tecno Pope.
You are missing the point and the truth scares you.
That is not our problem, nevertheless I enjoy your pussy reactions.
Nice wording from people who shitting their pants because Apple ruined itself and all the flaws and bugs are so cooool !
Why the truth is relevant ?
silverhawk is a pussy.
Better be an asshole than a pussy right?
You dumb dumb fanboys are really entertaining. Like a nervous little freak they loose anything if Apple gets the bash.
I love this Wall Street shit.
Capitalism from the States has reached its peak in Europe.
We are working on something much better than American Technology. Time is on our side.
Blabla….and you are a pussy, silverhawk. a bend over version of yourself. Do you feel me? Aaaah.
if you could only man-up you would easily see that Apple can loose evrything just because of investors and GS.
Steve always avoided Wall Street for good reasons.
PS:
America has a very deep problem and “Idiocracy” is right here (check IMDB)
It’s a zero-sum. The more they pay the EU, the less they pay the US taxman; the less they pay the EU, the more they pay the US taxman.
Thus by lowering their EU tax rate, Apple has raised their overall tax rate and taxes owed to the US Treasury, and thus books a global net effective tax rate of 26%, thats because US taxes are some of the highest in the world. Apple’s tax rate is far higher than Google, Microsoft, etc.
Apple has booked their tax, the question is which taxman gets it. Since the global recession, the EU has been very aggressive in trying to get more. It’s strange no, that all of a sudden the EU has found all of these tax problems, when Apple has been doing this for decades and reporting it in their filings? It wasn’t a problem before, but it is now? It’s a shakedown and those with the deepest pockets are going to pay.
Wrong Ken. By US law US corporations do not pay US tax on foreign operations unless and until the profits are repatriated to the US.
Did you even read my post? Where did I say it was paid? Booked means accounted for. Like I said the taxes have been booked, the question is who gets it.
Excellent and useful comment. /s
BTW you forgot the ‘m’ in your name.
It is laughable that the politicians are trying to find ways to get more tax income without changing the very loopholes that they created in exchange for support from industry.
Personally, I think companies should pay tax in the country in which the income was generated. If countries have tax loopholes then it should only be applied in that country. The EU just like the States needs to sort out the tax mess.
this is what the EU politicians want Apple’s and others Tax money for:
(as I posted previously):
Daily Mail:
“European chiefs have landed taxpayers with a ‘grotesque’ expenses bill running into millions of pounds that highlights once again the culture of excess in Brussels.
Private jets, luxury hotels, cocktail parties and even Tiffany jewellery were among the items claimed. MPs last night called for an inquiry following the release of astonishing details of commissioners’ lavish lifestyles.
In one case Jose Manuel Barroso, the European Commission president, ran up a £24,600 hotel bill during a luxury four-day stay in New York.
The figures reveal that the EU’s 27 commissioners clocked up a £6.6million bill for hiring private jets in the four years to 2010.
With extra expenses, the bill for their high life comes to £6.99million – but the sum is likely to be far higher.
Britain’s commissioners during the period were Peter Mandelson and Baroness Ashton. In 2009 alone, the Commission billed taxpayers £265,000 for cocktail parties.
.”
the guardian
” Barroso (head of EU commission) and 35 others spent €28,000 at the luxury Peninsula New York hotel during the visit to the UN climate change convention.
n additional €20,000 was spent on gifts for commission guest speakers since 2008, including cufflinks, fountain pens and Tiffany jewellery.
ArchiveEurope:
”
— European Parliament’s records show that in 2009 the EP awarded Biribin Limousines a contract worth €5.25m for transporting MEPs around Strasbourg ”
— 5.1 million for ‘Culture Club’ for EU officers…
—
According to its financial records, the European Parliament spent €36,860 on “protocol presents” such as “textiles, ties and scarves” in 200950. The gifts were bought from Nazareno Gabrielli – an Italian designer company specialising in luxury leather goods.
the telegraph:
“The Commission also ran up a bill of more than €300,000 (£263,511) for lavish cocktail parties, including an event in Amsterdam costing €75,000, which was described as “a night filled with wonder like no other”.”
etc.
OF COURSE THAT JUST THE TIP , MOST ARE HIDDEN UNDER CONFIDENTIAL:
“€381m was spent on “confidential” activities, which the commission refuses to disclose for security reasons. The degree of confidential spending in 2009 was more than double its 2007 level, at €221m.”
The European Competition Commissioner has been writhing like a worm on a hot skillet over this rubbish and continually delays her judgement. IMHO the writhing is all because she and her crew can’t find anything wrong but keep on trying nonetheless.
Writhe on European Competition Commissioner! It’s only your citizen’s money you’re wasting, again. (0_o)