Apple facing record bill for Irish tax

Thrugelmir

Looks like the temperature is about to rise between the US and the EU. Bursts Scotland's bubble to offer something similar where it to become Independent. At least the UK can control it's own taxation policies.

Apple could be ordered to pay billions of euros in back taxes in the Republic of Ireland by European Union competition officials. The final ruling, expected on Tuesday, follows a three-year probe into Apple's Irish tax affairs, which the EU has previously identified as illegal. The Financial Times reports that the bill will be for billions of euros, making it Europe's biggest tax penalty. Apple and the Irish government are likely to appeal against the ruling. Under EU law, national tax authorities are not allowed to give tax benefits to selected companies - which the EU would consider to be illegal state aid. According to EU authorities, rulings made by the Irish government in 1991 and 2007 allowed Apple to minimise its tax bill in Ireland.

http://www.bbc.co.uk/news/business-37216176

DiggerUK

Thrugelmir wrote: »

........At least the UK can control it's own taxation policies......

Yes, all those overseas territories under British protection. AKA tax havens..._

stator

What Apple and IE were doing was particularly ridiculous and I'm glad it's illegal.
Not quite the same as setting a lower corporate tax rate, which is completely legal. They could set it at 10% and encourage a lot of businesses.
What the EU is saying is that everyone has to pay the same.
Apple got away with paying virtually nothing due to a cozy deal.

Thrugelmir

DiggerUK wrote: »

Yes, all those overseas territories under British protection. AKA tax havens..._

Starting to come back on onshore in some cases. Not as straightforward as simply operating off shore. You still need a local entity to trade. Which results in duplication of resources and time which costs money.

movilogo

Why Apple is at fault here? I'm sure they paid enough tax what was legally required.

Is it not the problem with Irish govt? It is their fault that they undercharged Apple.

LHW99

So will the EU go after Luxembourg next ....Mr. Juncker?

Thrugelmir

movilogo wrote: »

Why Apple is at fault here? I'm sure they paid enough tax what was legally required.

Is it not the problem with Irish govt? It is their fault that they undercharged Apple.

Seems as if they had a "head office" that didn't even exist. No employees even. Perhaps someone dropped the ball when creating the avoidance scheme.

System

So the Irish government don't want their billions? How very odd - it must be the only time in recorded history that a tax man has declined to take a tax bonanza.

Conrad

Setting aside the moral arguments of Apples behaviour, is another nail in the coffin for the EU as business now perceives it as intrusive, socialist and over regulated. Another bonus for the nimble business freindly UK

zagubov

Thrugelmir wrote: »

Looks like the temperature is about to rise between the US and the EU. Bursts Scotland's bubble to offer something similar where it to become Independent. At least the UK can control it's own taxation policies.

yada yada yada

Can you stop obsessing about an independent Scotland for even a minute! :eek:

mrginge

Surely it's time for tax rates to be standardised across the EU

:eek: