Apple Ordered to Pay Back Taxes to the EU

[Dashinka 24,995]

I guess the cost of iPhones will be going up.

The European Unions antitrust regulator demanded that Ireland recoup roughly 13 billion ($14.5 billion) in taxes from Apple Inc. after ruling that a deal with Dublin allowed the company to avoid almost all corporate tax across the entire bloc for more than a decadea move that could intensify a feud between the EU and the U.S. over the blocs tax probes into American companies.

The tax payment is the highest ever demanded under the EUs longstanding state-aid rules that forbid companies from gaining advantages over its competitors because of government help.

http://www.wsj.com/articles/apple-received-14-5-billion-in-illegal-tax-benefits-from-ireland-1472551598

[Jacque67 7,328]

Apple? Rotten to the core!!!!!

[Jacque67 7,328]

Apple boss Tim Cook expects the iPhone maker to repatriate huge offshore profits to America next year, paying billions of dollars in deferred taxes to the US Treasury.

In an interview with RTE radio, he gave a summary of the companys 2014 tax affairs, saying: We paid $400m [in tax] to Ireland, we paid $400m to the US. And we provisioned several billion for the US for payment as soon as we repatriated.

Right now I would forecast that we repatriate next year. So it is not true that we would pay just $400m, or even just $800m, the number is materially larger.

Tim Cook.

Tim Cook. Photograph: Niall Carson/PA

The revelation that Apple plans to repatriate some of its offshore profits and pay its huge US tax bills next year comes as a surprise given Cooks previous refusal to countenance such a move.

Like many large US multinationals, Apple has for decades been pooling its non-US profits outside of America. Under loopholes in the tax laws, corporations can defer US taxes continually so long as income is not repatriated to America.

In July, Apple told investors its cash pile held offshore had reached $214.8bn (£162.2bn). This is the largest of any US company.

Cooks surprise U-turn on repatriating foreign profits comes days after Apple was accused by competition regulators at the European commission of receiving state aid from Ireland.

The commission said billions of income had been allowed to pass through Apples Irish-registered companies untaxed. Both Apple and Ireland have insisted they will appeal against the decision. Meanwhile, some politicians in the US have described it as a political attack.

https://www.theguardian.com/business/2016/sep/01/apple-boss-tim-cook-repatriate-billions-to-us-treasury-next-year

[Rob L 3,811]

I guess the cost of iPhones will be going up.

The European Unions antitrust regulator demanded that Ireland recoup roughly 13 billion ($14.5 billion) in taxes from Apple Inc. after ruling that a deal with Dublin allowed the company to avoid almost all corporate tax across the entire bloc for more than a decadea move that could intensify a feud between the EU and the U.S. over the blocs tax probes into American companies.

The tax payment is the highest ever demanded under the EUs longstanding state-aid rules that forbid companies from gaining advantages over its competitors because of government help.

http://www.wsj.com/articles/apple-received-14-5-billion-in-illegal-tax-benefits-from-ireland-1472551598

How do you know the price of iPhones will go up? Apple is obviously maximizing revenue to what the consumer will pay. The US wants Apple to repatriate and pay taxes on earnings, this is a question of what actions the EU is entitled to make.