Roger Fingas
Apple could owe in excess of $8 billion in back taxes after the conclusion of a European Commission investigation into its Irish tax dodges, a new estimate suggests.
Apple pays about 1.8 percent in taxes on the revenue it generates outside the U.S., not even the 2.5 percent figure normally cited, according to Bloomberg Intelligence. If the Commission finds against Apple, the company could end up paying 12.5 percent on the $64.1 billion in profits it took in between 2004 and 2012.
The Commission has been investigating a collection of multinational corporations and European governments, accusing the latter of breaking rules against state aid by offering special tax incentives to the multinationals. A recent ruling against Belgium will see a group of 35 companies pay back $765 million.
Until recently Ireland was infamous for tax loopholes allowing companies like Apple to funnel billions in revenue from other countries yet avoid paying normal local or foreign taxes. The Irish government is working to close some of those loopholes, but could still face reprimands from the Commission, which has been investigating the country since 2014.
A ruling was recently delayed and now isn't expected to be issued until at least March.
Apple CEO Tim Cook has repeatedly insisted that his company follows the law and pays everything it owes. In a 60 Minutes interview the executive complained about U.S. politicians scrutinizing Apple's tax dodges, calling the allegations "total political crap."
Charles Martin
Malcolm Owen
William Gallagher
Christine McKee
Wesley Hilliard
114 Comments
I recommend Apple sue both the EU and the Irish government for damages, plus file a formal complaint seeking sanctions against the EU by the WTO.
...this was news 2 years ago. Nothing new has happened, aside from EU deciding to postpone the case against Apple (probably because they figured they didn't have one...). They are picking on "easier" targets first like Amazon and Google.
Yeah right... planted by someone with an agenda like all the other trash.
...and by the way, Apple has been setting more than plenty aside for potential tax claims for years. So even if they were to pay, that would come from prior years income statements.
Ah another story followed by comments not understanding EU law about illegal state aid and who has to pay if found to be infringing.
If and it still is a big if Apple is found to have benefited from state aid not allowed under EU law. Apple has to pay back what is owed.. it is essentially a back dated demand on the taxes it should have paid (if it is found to be in the wrong).
I don't appreciate how the author refers to Apple's "tax dodges." The clearly has a negative connotation when Apple did NOTHING WRONG. Apple received tax incentives from the Irish government. If any party did something wrong, it was the Irish government and, if wrong, they should be sanctioned for it.
Apple can't undo having set up operations in Ireland premised on those incentives. Apple kept their end of the bargain. The problem is these overspending governments looking for any possible source of funding to put off the inevitable reckoning that will come.