|The country is going to fight the European Union’s order to force it to collect back taxes from the US tech giant. The EU competition authorities hit Apple with the back-tax bill almost 4 months ago following its longtime reporting of European-wide profits via Ireland, which charges Apple only for sales on its own territory at Europe-low rates. The problem is that those have been largely reduced through the use of shell companies.
Ireland argues that its low taxes are the only benefit that attracts foreign investors, and there is nothing illegal in levying far less tax on profits than imposed by competitors. The country accuses EU competition authorities of unfairness and claims that they exceeded their competence and authority.
The European competition commissioner ordered Apple to pay Ireland €13bn for gross underpayment of tax on profits within the EU for the last decade. It was found that the tech giant used two shell companies incorporated in Ireland in order to allow Apple to report its Europe-wide profits at effective rates less than 1%.
By the way, the scope of the order could have been even greater, as European Union time limits allowed the judgment to include potential tax infringements dating only from 2003, rather than from 1991, when the Apple’s tax deal with Ireland started. However, the experts estimate that the commissioner’s order would actually total €19bn thanks to compounding interest from delayed payment.
Ireland has the fastest-growing economy in the region thanks to the exports of nearly 1,000 multinational corporations employing 5% of the country’s workforce and generating about 25% of economic output. It must be said that Apple is the biggest private employer in the Irish city of Cork, employing more than 5,500 people there and bringing about €19bn in salaries, tax and investment to the Irish economy every year.
The EU judgment has implications for more than 600 US multinational corporations based in Ireland, as well as thousands more using tax-avoidance vehicles all over the world. Apple has denounced the competition commissioner’s order, disputed her calculations and said that Apple would pursue its own legal challenges.
It is known that Ireland has long been charging a headline rate on corporate taxes of 12.5%, which is twice less than the European norm and much less than the US rate of 35%. This approach has facilitated the complex use of shell companies that helps multinationals pay far less on non-US sales. Although the finance department has
pledged to close its shell company-focused rules, that move is unlikely to prevent global companies from shifting the same accounting strategies to other countries. Posted by:
Wednesday, December 21st, 2016
|Good on you Ireland.|
Who the Fu*k dose the EU think they are. Nothing worse then an outsider trying to dictate to another how to run their country's finance's
|posted by (2016-12-22 03:27:10)|
|posted by (2016-12-22 12:42:57)|
|@russianfuk what the hell is wrong with you, would you (the little guy) prefer to paid more taxes and let apple pay no tax on revenue ($233 billion), profit ($53 billion), assets ($239 billion) and market cap ($586 billion) for the past year with they overprice crap product made in China.|
I don't know which country you live in, but i am sure that if you(the little guy)owe back taxes, your government would come down on you like a ton bricks.
this multinationals have a army of accountants and lawyers to find every single loopholes in the tax code.
You should think twice before making a ignorant comment.
|@edddy I think you have taken my words out of context I agree with you that apple should pay their fair share of tax, but the issue here is, if a country wants to attract foreign investment it does so by offering tax incentives, which Ireland did, and have a right too, as a sovereign country. It's called freedom. and lots of countries do this. And as for the little guy you mentioned, the little guy has been fu*ked for a long time and will be forever more, they are easier to target as their will to resist is weak.|
Best advice I give to the little guy is Stay out of debt. grow your own food and don't buy things you don't need, and you too will be free.
And YOU, should think twice, before making an ignorant comment. Cheers
|ireland is in the eu and abides by their rules and laws|
a bit like texas being told what to do by a guy in washington,
united states of america? well united countries of europe.
anyway, it will give jobs to all those potato farmers if they chase money from apple,
although typical irish to stupid to want the money
|posted by (2016-12-23 05:08:43)|
|Don't get me started on Ireland! LOL I love the spirit and love them period! Although I had a bad experience with one of them in a bar one time. Maybe he was military but he had an arm like popeye the sailor man and lost in an arm wrestling competition. And I mean I couldn't even remove my arm from his grasp when I wanted to let go! LOL He did seem to under estimate how strong I was during but I had to stop or my arm would have been broken.||
Most Popular Stories