Roger Fingas
Apple and the Irish government are reportedly nearing a deal that would shield the latter from losses incurred while holding up to $17.7 billion in Apple cash, including interest — money that may be due in back taxes following a 2016 European Commission ruling.
Even if the government ultimately returns the money to Apple, it wants to be sure it isn't liable for any drops in value, Bloomberg said on Friday. One of two sources for the publication indicated that an agreement could come within the next few weeks.
Ireland is well behind schedule in collecting the money. The original deadline was Jan. 3 — by May, the Commission was warning that the country could end up in court. In July the Irish government said it was still finalizing arrangements.
In August 2016, the Commission ruled that Ireland had offered "illegal tax benefits" to Apple, which it also said had been "reverse engineered" to ensure they stayed low. The company is estimated to have paid 1 percent in 2003, and as little as 0.005 percent in 2014 — despite using the country to funnel billions in international revenue.
The decision was immediately met with stiff opposition by Apple, Ireland, and the U.S. government. An Irish appeal is currently underway, but could take as long as five years, and may still be unsuccessful.
"We continue to cooperate with Ireland on the recovery process the commission has mandated but remain confident that once the General Court of the EU has reviewed all the evidence it will overturn the commission's decision," Apple said in a statement on Friday.
In recent years the European Commission has attempted to crack down on multinational corporations exploiting tax loopholes — a serious issue given both budget shortfalls and E.U. law, which stipulates that governments can't extend breaks to some companies but not others. Apple has insisted that it's simply following regulations.
Amber Neely
Oliver Haslam
Malcolm Owen
Christine McKee
Charles Martin
William Gallagher
22 Comments
The European Commission created the loopholes and what, they expected corporations not to exploit them? Much like the U.S. tax code, these policies are full of holes and escape hatches put there by the politicians. Then when the light is shined on them those same politicians scramble to “crack down” on the very loopholes they put there in the first place. And please, don’t make yourself look stupid by blathering about ‘fairness’ and using terms like ‘tax evasion.’ If it’s legal it’s not tax evasion. It means you have very smart accountants.
Well, if it's a loophole, it's probably an open and shut case, but if the EU decision wasn't part of a loophole, that's a completely different story.
It is clear to any reasonable person that Apple owes these taxes. I wish that Apple (as the most valuable company in the world) would set a good example, and pay its fair share of taxes in the European Union, the USA, and around the world.