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EU Finance Ministers Line Up Behind $21B Tax Ruling Against Apple (herald-dispatch.com)
An anonymous Slashdot reader quotes the Associated Press: Dutch Finance Minister Jeroen Dijsselbloem urged Apple Saturday to "get ready" to pay up, as he and counterparts from other EU nations lined up behind a finding that the technology giant owes billions of euros due to more than a decade of improperly low taxation. Apple's bill could reach 19 billion euros ($21 billion) with interest, and both the company and Ireland, Apple's European headquarters are appealing the European Commission ruling. But on the last day of an EU finance ministers' meeting focused on ways to harmonize tax rules for international companies, Dijsselbloem told reporters that these "have an obligation to pay taxes in a fair way."
"International tax loopholes are a thing of the past," he said. Apple will have to pay back taxes both in the United States and Europe, he added, "so get ready to do that." Philip Hammond, his British counterpart, said the EU was keen "to make sure that international corporations pay the right tax at the right place. That's the fair way to do it, and we are going to make sure it happens."
Austria, France, and Italy are reportedly also watching the case closely.
"International tax loopholes are a thing of the past," he said. Apple will have to pay back taxes both in the United States and Europe, he added, "so get ready to do that." Philip Hammond, his British counterpart, said the EU was keen "to make sure that international corporations pay the right tax at the right place. That's the fair way to do it, and we are going to make sure it happens."
Austria, France, and Italy are reportedly also watching the case closely.
By that reasoning, if you make an honest mistake when filing your taxes and this mistake is not caught by the government when you submit your tax return netting you a substantial larger income tax refund than what you should have rightfully received, then you should be able to keep any money you get from them, and not have to pay any of it back when they discover the mistake? While you may not actually be guilty of tax fraud in such circumstances, are you going to argue that you should be able to keep everything that they sent you? You shouldn't be charged any interest for the intervening time between when the taxes were filed and when the mistake was discovered, of course, but why shouldn't you have to pay the difference back?
This actually happened to me, by the way... It was actually my employer's mistake, but it was unintentional on their part as well. I still had to pay back the difference between what they sent me and what I should have received. (Without interest penalty though... as long as I paid it back within a certain time of the date that they sent the notice of the error).
File under 'M' for 'Manic ranting'
They didn't change the rules afterwards.
I'm sorry, I don't think you know what the word "change" means... you keep using it wrong...
Since corporations are theoretically immortal, there should be no statue of limitations on them. There are many corporations over 1,000 years old. The statue of limitations is based around the idea of degradation of evidence. Yet in these cases, there are rock-solid records of the accounting so that doesn't apply. Another reason is that a normal person is "punished" by their conscious over time; but corps don't have morals, conscious, mortality, or any other human similarities. For most publicly traded corps it's all about next quarter's profit; let the lawyers fend everything else off.
This is a remarkable display of ignorance and stupidity. I've seldom seen so much wrong in one comment.
Apple has to jack up their prices to pay for this huge financial hit. Every future consumer of Apple products is hurt.
The 'hit' is on their profits. That means that they can leave prices untouched and still not lose money.
Since this is a tax payment it'll also be offset against any tax they pay when repatriating their profits back to the US. So it's not even additional cost to them, it's just payment to Ireland instead of the US Government.
The only people that lose out from this are the US taxpayers.
The EU gains power from a legal precedent, which it will use to abuse other companies.
The EU were already enforcing the treaty obligations against state subsidies anyway, including ones comparable to this.
So no new legal precedent.
Also no abuse. The only abuse in this whole sordid tale is Apple's abuse of the tax laws.
The EU gains $21 billion, equal to 9% of Ireland's GDP.
No. Ireland gains $21 billion. Although Ireland is in the EU, none of that money goes directly to the EU.
(Some of it will likely get there indirectly).
This money will be used to grow the EU bureaucracy, enabling it to further abuse everyone living in the EU.
Holy shit. I voted for the UK to leave the EU and even I don't describe the EU as abusing everyone living here. Since the money wont reach the EU, no, it wont expand the bureaucracy.
Another tax haven, where decent people can escape thieving government, is lost.
Decent people couldn't take advantage of the special terms Apple negotiated, so nothing is lost. Apple is a company and not people, and is pretty fucking far from decent, so again nothing is lost.
And you consider that a good thing.
Hell yes.
Absolutely.
Completely.
It's awesome. Fantastic. Magnificent.
Any other questions?