“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.
SEE ALSO:
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