Apple’s pot of gold may shine on reluctant Ireland’s bond market

“Apple Inc. is challenging it, Ireland’s government doesn’t want it, but bond investors might one day end up benefiting from it,” Dara Doyle reports for Bloomberg.

“The European Commission’s ruling last week that the U.S. company must pay Ireland as much as 13 billion euros ($14.5 billion) plus interest is ‘potentially highly significant’ and could help narrow the premium of 10-year Irish bonds over German debt even further, according to David Schnautz, an analyst at Commerzbank AG,” Doyle reports. “‘It’s like having a potential oil field or pot of gold offshore — what’s the worst that can happen?’ Schnautz said. ‘I don’t see much downside for Ireland and Irish bonds.'”

“Finance Minister Michael Noonan last week called the judgment an attack on the nation’s 12.5 percent tax rate, the cornerstone of its economic policy, and the government will appeal by the end of November in an attempt to avoid undermining Ireland’s allure for U.S. companies,” Doyle reports. “Including interest, the final Apple payment may rise to 17 billion euros. To put that in context, Ireland’s national debt stands at 180 billion euros. The EU also opened the way for other nations to claim a share of the Apple tax, meaning that even if the European courts force the company to pay, Ireland may not be only beneficiary.”

Read more in the full article here.

MacDailyNews Take: Apple’s not paying Ireland 13 billion euros.

Former EU competition commissioner: Vestager claim that Apple owes back taxes an incorrect use of EU law – September 2, 2016
Irish government to fight EU on Apple tax – September 2, 2016
Treasury accuses EU of trying to steal U.S. tax revenues with Apple decision – September 1, 2016
Irish residents opposed to EU’s tax demand of Apple – September 1, 2016
Apple Inc. pushes back against EU tax grab – September 1, 2016
Apple may repatriate billions of dollars next year after new U.S. President takes office – September 1, 2016
U.S. tax code allows for dramatic retaliation against EU overreach in Apple case – September 1, 2016
Apple CEO Tim Cook on EU tax demand: ‘No one did anything wrong here and Ireland is being picked on… It is total political crap’ – September 1, 2016
U.S. Treasury: The European Commission’s retroactive tax demands on Apple are unfair – August 30, 2016
EU demands Apple pay massive $14.5 billion in taxes plus interest – August 30, 2016
U.S. government warns EU: Do not hit Apple with a massive back tax bill – or else – August 25, 2016


    1. oh yes, he is…
      Early in 1980, the media said President Carter would win easily over the “divisive” and “dangerous” Ronald Reagan.

      On election day 1980, the media warned that the election was “too close to call” and that it would be a very late night.

      Before the polls on the West Coast closed, Carter conceded. LANDSLIDE.

      Phyllis Schafly called it right on Reagan and she called it right in her last column on Trump.

          1. … came down because of decades of effort by various countries, mainly the US, and the realization by the USSR that keeping it would mean their own destruction. True … they realized that too late … different chapter in the same book.
            The only “patriots” involved in tearing it down were young German protesters – the leftists you love to hate – who swarmed the wall and picked it apart while the Russians/East Germans watched, quietly.
            As for those hostages, they were there, in part, because the GOP leaked info about their rescue. Not saying Reagan had any explicit part … some of Bush Sr’s cronies may well have. You want to nail Clinton over Benghazi? I’d like to nail quite a few GOP ‘operatives’ over THEIR BS.
            And WTF does your comment, or your replies, have to do with anything ‘Apple’?
            MDN … could you see your way clear to deleting Botty’s Off Topic remarks (above) as well as those (like mine) responding to them? Thank you.

            1. Read your own post, botty. Your quote says “decades” of effort, not eight years. The USSR was spending itself into the ground before Reagan took office. I will admit that Reagan may have hastened the inevitable breakup of the USSR by attempting to spend the U.S. into the ground, too.

      1. And ever since, the change in economic ideology has caused the wealth of the nation to “trickle up” to the hyper-wealthy, destroying the middle class. I don’t believe Reagan thought that this is what would happen, and he is not alone in the causes of what happened. Clinton, and all those that followed, continued the policies that formed the basis for this tectonic shift. Wisdom is proven by its children. The economic philosophies of Friedman, Rand, Marx all have proven to be failures. It’s time to forge a sustainable capitalism. It is interesting that the tax rate for the hyper wealthy during the decades of growth after WWII/Great Depression would seem impossible now (70 to 90%, I believe). I am not saying that simply returning to those rates would solve the problems we have now – but for all those who argue you have to have low rates at the top to encourage economic health – history does not prove the argument – but, the very opposite. The growth that has happened has not benefited everyone. With no middle class, the economy is not sustainable. The answers will not be as simple as politicians often paint, pointing the finger at a group of people, or other scary problems (like terrorism), keeping our eye off the “real ball”. The very first thing is: we are the UNITED states – we are in this thing together. Everyone’s needs and voices should have weight in Washington, as well as in the State capitols. This means that elections have to be financed differently. The Supreme Court’s silly argument that money = free speech has insured that the only speech being heard is from those with the most money. Their voice needs to be heard too, but not in exclusion to the needs of everyone else. If they truly want to be “Ayn Rand-selfish” they should realize that the current path is not sustainable – start looking at how to flow wealth from economic growth through society. That is not an easy thing (just do “this” or “that”), but we must find a way. I just wish that people would stop pushing economic philosophies that history has proven wrong – whether the trickle-down theory or Marxism. I also wish that we would collectively be the people that Lincoln referred to as those who cannot be fooled all the time.

      2. Wonderful logic there, botty! You cite a single event that occurred 36 years ago and extrapolate the results to an entirely different election situation that we now face. Brilliantly self-serving and worthless reasoning.

        And you wonder why only your fellow like-minded anonymous posters tend to agree with you? It is because you post only to reinforce your own beliefs. I heard similar crap from you during the last two elections. You are like a stock analyst – bound to be right…someday.

    2. Lol! You are correct, at least concerning Ronald Dump. Just the notion of having to endure the unending ridicule from the entire planet as they watch his stupid tower of babel project from space, makes me want to vomit. I was all but giddy to send Palin (and her silly glasses) back to Alaska, I’ll be over the moon to put an end to this turkey… trust! Hang in there world, it’s almost over now.

  1. Apple will end up paying somebody and the on,y questions are to who and exactly when. If they weasel their way out of Irish taxes the IRS will come calling with a significant tax bill.
    At some point it will be more expensive in time and money to keep fighting and they will reach a settlement. I seriously doubt you will see a US tax holiday soon for corporate America.

    1. ” If they weasel their way out of Irish taxes”

      I am constantly amazed at how some people have such affinity for twisting words.

      It is not Irish taxes. It is EU “made up” taxes.
      FACT: The Irish gov says Apple does not owe it.

      What is it about tax loving people that read articles like that and cannot fathom that what they are reading could possibly be wrong?

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.