Roger Fingas
The U.S. Treasury Department on Thursday issued new legal guidance that might prevent Apple from recouping any back taxes owed in Ireland by claiming them against taxes it would normally pay in America.
"We are closing another tax loophole that contributes to the erosion of our tax base," said the Treasury's Assistant Secretary for Tax Policy, Mark Mazur, in a statement seen by Reuters. The guidance limits the scope with which multinational corporations can apply to have foreign tax credits count against their U.S. taxes.
The European Commission recently concluded that Irish tax deals with Apple constituted illegal state aid, and ordered the country to collect $14.5 billion in back taxes from the Cupertino, Calif., company. Both Apple and the Irish government are planning to appeal the decision, the latter because it's worried about losing appeal with foreign businesses. Apple has already made commitments to stay in the country.
Although the Irish government has since moved to close some loopholes, for many years Apple was able to funnel billions in international revenue and pay minimal taxes. In 2014, the iPhone maker paid just 0.005 percent on its European profits, a minute fraction of Ireland's standard corporate tax rate.
While it's uncertain if the new Treasury guidance will impact Apple, a spokesperson for the agency specifically mentioned wanting to counter credits companies might claim after state aid investigations.
Andrew O'Hara
Christine McKee
Charles Martin
Wesley Hilliard
Malcolm Owen
William Gallagher
46 Comments
Biting the hand that feeds you. Apple pays a ton of taxes already in the US and the greedy government wants more. Why don't they go after all those 1%'s who find all sorts of loopholes to pay next to nothing? Of wait, it's easier to just go after Apple.
Can you point me to the actual amount of taxes Apple paid Ireland in 2014? I don't want the numbers by the corrupt EU commission, I want Ireland's numbers.
As for state aid, I see every state in the US making various deals with all corporations to locate in their state. Are these forms of legal state aid or just good business?
Title is wrong, it would just delay the tax recoup until Apple brings the taxed money back to the US.
Good. Either pay your effing taxes or reduce your tax burden by reinvesting in R&D.
Wow, thats some serious BS US Treasury. So I guess hell will freeze over before AAPL brings its cash home -- cause they sure aren't doing to be double taxed on that money. Bunch o' dummies.