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.
In the wake of the European Commission's ruling against tax deals between Apple and Ireland, the finance ministers of several other European countries are reportedly considering a share of the iPhone maker's back taxes.
Apple's appeal of the European Commission's $14.5 billion charge in back taxes will be aided by Ireland's cabinet, who voted on Friday to endorse the legal challenge.
Most U.S. officials are lining up to fight the $14.5 billion E.U. tax edict with support from assorted talking heads, but the battle appears to be more about which taxation agency the money belongs to, rather than actual support for Apple.
A long appeal process over Apple's Ireland tax bill might have unintended consequences, with a governmental official who has opposed the ruling making claims that the tally will be closer to 19 billion euro ($21.2 billion) when the process concludes.
While a prominent Irish businessman is decrying the $14.5 billion tax edict applied by the European Commission with strong language, members from Ireland's government have started the appeal discussion — but the process may take more time than expected to garner sufficient support from a wide body of lawmakers.
On Tuesday the Deputy Prime Minister of Turkey extended an open invitation for Apple to move its international operations to that country, in the wake of a E.U. ruling ordering Ireland to collect $14.5 billion in back taxes from the company.
While a $14.5 billion payment of back taxes could bankrupt many major corporations, it's pocket change for a company as cash flush as Apple. As a result, analysts surveyed by AppleInsider on Tuesday said they aren't concerned about the European Commission's decision, regardless of how an appeal ultimately plays out.
Apple has posted a series of answers to questions about the European Commission's tax ruling, and appears to be unconcerned about any potential financial fallout.
On Tuesday, the European Commission handed down its biggest tax penalty yet, ordering Apple to pay 13 billion euros ($14.5 billion) in back taxes — but both Ireland and Apple are appealing the ruling.
On Tuesday the European Commission will find against Ireland's tax arrangements with Apple, and ask the country to collect over 1 billion euros ($1.119 billion) in back taxes, a report claimed on Monday.
More than nine months after Apple first announced plans to expand its European headquarters in Cork, Ireland, and amid an EU probe into questionable tax practices, the company was recently granted approval to add 1,000 people to its workforce over the next 18 months.
The U.S. Treasury Department issued a special white paper on Wednesday, threatening that it will "consider potential responses" should the European Commsission demand that Ireland collect billions of euros in back taxes from Apple.
Coming in well ahead of its deadline, Ireland's An Bord Pleanála has approved plans to build the first stage of an Apple data center, which will include support buildings and one of eight eventual data halls.
An Bord Pleanála — an independent appeals review body — said it will likely make its decision on Apple's Irish data center by the end of the month, either greenlighting the company's development plans, or potentially causing delays.
A U.S. Federal Court has ruled in Microsoft's favor in a closely-watch case involving a warrant the government obtained for a customer's emails stored on an Irish server. The ruling frees U.S. companies from being forced to hand over customer data if it's not being stored within the U.S.
Following a meeting with European Commission chief Margrethe Vestager on Tuesday, Irish Finance Minister Michael Noonan said he expects the EU antitrust regulator to reach a decision in its investigation into Apple's Ireland tax agreements by September or October.
U.S. Treasury Secretary Jacob Lew is reportedly meeting with the head of the European Union's antitrust efforts, Margrethe Vestager, ahead of an anticipated ruling on whether the Irish government will have to collect back taxes from Apple.
Apple is once again finding itself on the defensive about its proposed Irish datacenter, with some critics charging that the company picked an arbitrary safety distance from nuclear facilities.
In an effort to allay local concerns over a massive data center project in Galway, Ireland, Apple this week offered greater detail on environmental initiatives it has planned for the site, from forest repopulation to the creation of a public woodland walkway.
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Roger Fingas
Neil Hughes
Mike Wuerthele
AppleInsider Staff
Daniel Eran Dilger
Mikey Campbell
