“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