“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.
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