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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.

10 of 120 comments (clear)

  1. Finally by johnjones · · Score: 4, Insightful

    they should pay tax somewhere... I do and most of the world does... it's that or death...

    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. Re:Finally by Plumpaquatsch · · Score: 4, Informative

      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.

      You, like most her, completely misunderstood what's going on. QTFA: "While the companies themselves aren't under investigation, their input is being sought because they would be required to return any unpaid taxes."

      I repeat: Apple is not under investigation, they will not be fined. The worst that can happen to them is be required to pay taxes saved. It's only Ireland who is in trouble (and the other countries under investigation).

      --
      Of course news about a fake are Fake News.
  2. Re:From what I've heard... by TheP4st · · Score: 5, Funny

    You are confusing Apple with their customers.

    --
    "I have downloaded hundreds and hundreds of records, why would I care if somebody downloads ours?" Robin Pecknold
  3. Not true by MikeMo · · Score: 5, Informative

    The EU never made such a statement and never levies fines in such cases even if the action turns out to be illegal.

    This is another case of breathless reporters doing their best to get clicks by accusing Apple of something, anything.

  4. Re:I would like to see a return... by jbssm · · Score: 5, Informative

    We could have socialized medicine in the US if we could get this money.

    USA doesn't need more taxes to have socialized medicine. USA has the 10th biggest public healthcare expenditure per capita of the world already, more than 20% higher than the UK and Canada for instance.

    So, unlike what the majority of the Americans actually thinks, they are paying more for much much less, just out of they congenital spite over "paying stuff to poor people".

    Source: PRB Per Capita Public Expenditure on Health (US$)

  5. 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.

  6. Re:I would like to see a return... by Eunuchswear · · Score: 5, Insightful

    Just in case anyone is misunderstanding what jbssm is saying.

    The US public spending on healthcare is the 10th biggest in the world, larger than many countries (E.G. the UK) that have "socialised" health care.

    I.E. The taxes Americans already pay are enough to provide "free" healthcare for every American. And you could stop paying health insurance and all other health costs.

    --
    Watch this Heartland Institute video
  7. Re:I would like to see a return... by Xest · · Score: 4, Insightful

    Yep, they'd never follow through with the bluff anyway. If the UK government called say, Amazon's bluff, and said we're forcing you to pay this tax so go ahead, leave the country if you want and Amazon left then that'd create a massive void in which a competitor for Amazon could start up in the UK and use it as a launchpad to challenge Amazon elsewhere in the world.

    It is genuinely a ridiculous argument that they'd leave if they had to pay intended corporation tax, especially in a country like the UK - no major company is going to forfeit a market like that over a 21% corporation tax rate, it's just still way too profitable to ignore and way too risky to leave open to a competitor that would gladly fill the void and gain a foothold.

    It's even more ridiculous in the context of companies like Starbucks who face heavy competition in the UK from companies like Costa and Cafe Nero - these guys could take over Starbucks' premises and hire all their staff within no time so you wouldn't even really see anything more than a very very short term hit in terms of job losses in many cases. As we've seen during the recession as a result of bankruptcies, you can take over another companies stores post-Administration and rebrand them and get their staff working for you in their old premises within a matter of only as little as a week or two in many cases.

    Companies aren't simply going to turn away and say "We can only make £100 million in profit if we pay corporation tax, instead of £120 million, it's just not worth it" if they were given an ultimatum between paying corporation tax and leaving the UK market altogether. They might well sulk, but millions in profit is millions in profit and you don't say no to that- especially when all your competitors are at the exact same disadvantage.

  8. Re:I would like to see a return... by Rhipf · · Score: 5, Insightful

    The reason no one heads to Canada for medical treatment is that they wouldn't be covered and would have to pay out of pocket.

    Are there problems with the Canadian healthcare system? Sure.
    Would I be willing to give up my healthcare coverage for a US type system? No @#$%ing way!!!
    I am more than willing to put up with the limitations of the Canadian system secure in the knowledge that I won't go bankrupt if something happens to me that involve extensive medical care.