- Joined
- May 22, 2012
- Messages
- 16,875
- Reaction score
- 7,666
- Location
- St. Petersburg
- Gender
- Male
- Political Leaning
- Libertarian
Apple Inc. was ordered to pay as much as 13 billion euros ($14.5 billion) plus interest after the European Commission said Ireland illegally slashed the iPhone maker’s tax bill, in a record crackdown on fiscal loopholes that also risks inflaming tensions with the U.S.
The world’s richest company benefited from selective tax treatment that gave it an unfair advantage over other businesses, the European Union regulator said Tuesday. It’s the largest tax penalty in a three-year campaign against corporate tax avoidance. Apple and Ireland both vowed to fight the decision in the EU courts.
Apple, which employs about 6,000 people in Ireland, was one of the first companies caught up in the EU’s backlash against corporate tax-avoidance. The EU, like other global regulators, has targeted firms that sidestep taxes by moving around profits and costs to wherever they are taxed most advantageously -- exploiting loopholes or special deals granted by friendly governments.
While 13 billion euros is the highest ever sought by the EU in a state-aid case, it is unlikely to leave the company short of money. As of last month, Apple had $232 billion in cash, with about $214 billion of that being held overseas. Apple generated about $4.45 billion a month last year, meaning the decision would eat up about 3 months of profit.
Apple was allowed to allocate almost all sales profits to a head office that “only existed on paper.” This head office “has no employees, it has no premises, and it has no real activities,” she said. “The head office was subject to no tax in Ireland or elsewhere.”
Apple Ordered to Pay Up to $14.5 Billion in EU Tax Clampdown - Bloomberg
The world’s richest company benefited from selective tax treatment that gave it an unfair advantage over other businesses, the European Union regulator said Tuesday. It’s the largest tax penalty in a three-year campaign against corporate tax avoidance. Apple and Ireland both vowed to fight the decision in the EU courts.
Apple, which employs about 6,000 people in Ireland, was one of the first companies caught up in the EU’s backlash against corporate tax-avoidance. The EU, like other global regulators, has targeted firms that sidestep taxes by moving around profits and costs to wherever they are taxed most advantageously -- exploiting loopholes or special deals granted by friendly governments.
While 13 billion euros is the highest ever sought by the EU in a state-aid case, it is unlikely to leave the company short of money. As of last month, Apple had $232 billion in cash, with about $214 billion of that being held overseas. Apple generated about $4.45 billion a month last year, meaning the decision would eat up about 3 months of profit.
Apple was allowed to allocate almost all sales profits to a head office that “only existed on paper.” This head office “has no employees, it has no premises, and it has no real activities,” she said. “The head office was subject to no tax in Ireland or elsewhere.”
Apple Ordered to Pay Up to $14.5 Billion in EU Tax Clampdown - Bloomberg