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Apple Faces Large Penalties In EU Tax Probe

Posted by samzenpus on from the was-that-wrong? dept.

First time accepted submitter chasm22 writes EU Regulators are apparently set to accuse Apple and the Irish government of entering into several sweetheart deals that left Apple with lower taxes than what it legally owed. If the ruling is upheld, Apple could owe billions in back taxes. Interestingly, it seems that the Irish government would actually get the extra money and suffer little for its part in the scheme.

9 of 120 comments (clear)

  1. Re:Finally by Anonymous Coward · · Score: 5, Interesting

    I think we should allow companies with a head office on Mars be exempt from tax. With the money involved some companies might actually profit from setting up a permanent base there.

  2. I would like to see a return... by Anonymous Coward · · Score: 2, Interesting

    to how taxes were done right after WWII. 39% across the board for all companies. Close the loophole. If you have "a" presence in a given country, you pay taxes in that country.

    We could have socialized medicine in the US if we could get this money. Countries should band together and collect what owed. Full stop. Let's also kill right now, the notion that corporations are persons. It's a fallacy designed to be pro-business.

    1. Re:I would like to see a return... by JosKarith · · Score: 3, Interesting

      I see that BS line trotted out by companies all the time - "If you don't give us favourable treatment we'll go play with our ball somewhere else". I say that government should call their bluff - the next company that tries it just gets their licence to trade pulled and their shares suspended. See how quick the other companies back down.

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      'Don't worry' said the trees when they saw the axe coming, 'The handle is one of us.'
    2. Re:I would like to see a return... by Anonymous Coward · · Score: 2, Interesting

      Good. Let them actually carry their empty threats and try to do a Burger King.

      They will just owe more in import taxes after their temper tantrum is done. In fact, the US government might make more revenue if they add a penalty on their goods, similar to the expat citizen renouncing tax.

      Import duties are quite useful. It allows US businesses a level playing field, and if businesses choose to leave, revenue still comes in.

    3. Re:I would like to see a return... by jaseuk · · Score: 4, Interesting

      The USA may have highest per-capita spending, but that hides the fact that you have a system where very few people OVERPAY for your health-care compared to much of the rest of the developed world. It doesn't mean it's evenly spent.

      http://liberalconspiracy.org/2... : "For a direct comparison, that means that in England the government spends around $3,200 per capita on healthcare and covers the entire population whereas in the US the federal government spends around $3,700 per capita and yet covers less than a third of the population."

      You should have a much better economy of scale, particularly with drugs purchasing, research and best practice. Yet it doesn't bear out in practice somehow...

      Jason.

  3. Takes two to tango by qbast · · Score: 3, Interesting

    So if deal between Apple and Ireland was illegal, shouldn't Ireland be fined as well?

  4. Re:Finally by benjymouse · · Score: 3, Interesting

    But if the Irish laws supported Apple what's the legal basis for trying to claim back taxes?

    I believe that the claim is that *both* Apple and the Irish government colluded to bypass Irish laws (derived from EU directives). In that case the Irish government is also going to be in trouble, treaty-wise.

    I have a feeling that we'll soon see a pattern where Microsoft, Apple, Google and more did get illegal tax-breaks by moving european HQs to Ireland. If it can be demonstrated that they colluded to keep the arrangement secrets (to avoid EU commision inquiries) and that Apple et al thus should have known they did not comply with EU law, they could - and should - be in trouble.

    Apple has a big coffer - so naturally that is where the EU commision will look first. I doubt that there is political will to risk the statibily of the Irish economy by forcing fines on Ireland.

    Ireland is a leech, just like Luxembourg, Switzerland, Lichtenstein, the Channel Islands etc.

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  5. Re:Finally by Shatrat · · Score: 3, Interesting

    What lesson is that? Would Ireland have been better off if Apple and Microsoft and Google moved those jobs to Wales or France or Spain? Ireland is collecting income tax from all those employees, and sales tax from everything those employees buy. Why push employers away out of some fashionable drive for 'social justice'?
    For perspective, this same line of thinking comes up around here all the time. The county granted some tax incentives to an automotive factory to come in and unemployment dropped, new business opened up to support all the new faces and new incomes, and the county revenues went through the roof. Every now and then I hear somebody in a bar complaining about how Toyota isn't paying their fair share but most of us are too busy enjoying all the new parks and schools and better roadways.

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  6. Re:Finally by gbjbaanb · · Score: 3, Interesting

    real offices.... 1 real office block with 100,000 post office boxes and a lawyer. that's how they roll in the Cayman Isles at least, I figured Luxembourg did the same.

    Either way, are you getting "Google Luxembourg" confused with Google? A bit like Google UK that is staffed by salesmen... oh no, wait, they don't actually have any salesmen, oh no, because all sales are made by a member of staff from Google Ireland, I forgot. Or at least, that's what they told the taxman.

    All countries have a subsidiary office for the company, if only to be a front to pass the "IP licencing money" back to the real HQ in the Bahamas (via the other subsidiaries in Holland and Ireland of course)