Bloomberg reporting the EU ruling is coming down and Ireland/Apple have lost. Apple may have to pay up to $19bn in back taxes.
Do Ireland lose in the short term? The 19bn gets paid to Ireland?
time to party like 2004… giving our politicians 19b would be some debacle in how not to spend this money.
I doubt Ireland is going to get a tax windfall from Apple thanks the US authorities. I think that any taxes due will be going to the US or wherever the actual Apple sales were made, not to Ireland or the Netherlands. It will probably cost Ireland money and worse still if or when we lose this case then what other US multinationals have similar tax schemes in place, possibly all of them.
As I understand it, yes the money would go to Ireland (once all appeals are resolved). So there would be a short-term gain but possibly at the expense of long-term relationships with Apple and the other MNCs.
doubt this will ever happen - lots of appeals planned etc and view is ECJ will back Ireland
Sure. But the problem is that until it’s settled it sends a dangerous message about our tax rates, even though this relates only to specific historical agreements.
From Budget 2016 economic forecast doc
So we’ve placed all our eggs in the basket of those 10 companies to keep expanding their CT payments
Previously it was Countries enslaved to the big banana companies, now it is Countries enslaved to IT Tech Multi-nationals. It is the natural order of things(they’d have you believe).
At least with bananas their product is literally rooted in the soil of the country so there is some dependency on the country, now they can up and leave at a moments notice.
I await the day when it is cheaper for multi-nationals to site their operations on large barges moored in shallow water in International waters employing a few thousand people living like Oil Rig workers.
Google pays €28.6m corporation tax on revenues of €18.3bn
I make that 0.15% CT rate
CT is paid on Profits not Revenues so your calculation is spurious.
Obviously we don’t know the answer but what is their margin? There should be a connection between the total sales,cost of sales and profitability. Most companies benchmark themselves against the industry and aim for a 30% margin matching the best of the best. If they were on a 30 to 33% margin then they’d still be paying less that .5% tax on profits in Ireland assuming that the rest is shuffled off to a tax haven by way of luxembourg or holland where nothing is paid.
It is immoral that multi-nationals can arrange their affairs so that they pay practically no taxes while small businesses and citizens do not.
The large multi-nationals make their profits in safe societies paid for by those who contribute to those societies and not from hellholes like Afghanistan or Central African Republic. They contribute next to nothing anywhere.
I’m a bit annoyed today; I got my pay slip today and almost 50% of my overtime(the payment above my normal wage) went to state taxes/charges of one sort or another.
Without Ireland and other countries facilitating unreasonable tax avoidance by Multi-nationals, I as a resident of another EU Land would pay lower taxes.
On the other hand the shares I purchased from my after tax income in my multinational are appreciating quite nicely but that is nowhere near compensating for the high levels of Income tax I must pay on the sweat of my brow.
If Ireland didn’t have low corporate tax, you can be sure the multi nationals wouldn’t be bothered setting up here.
You should look at what your tax money is being spent on and direct your anger that direction - government.
I know. Just pointing out how they can legally do it.
CT of 28.6m @ 12.5% means their net taxable income was 228.8m
So Gross Income 18,300,000,000
less Expenditure 18,071,200,000
= Net Income 228,800,000
Corporation Tax 28,600,000
My tax money appears to be spent well here unlike in Ireland. At the moment on my daily drive to and from work I see water mains being upgraded, road verges being maintained, fallen leaves collected, asylum seekers being protected here safe from oppression in their own land, the police policing both the streets and rivers, the local light rail links being upgraded and motorways being upgraded and that is just on my daily drive.
If the Multi-nationals weren’t stealing this money away from the Country where I live I’d trust the people’s government to push through other socially beneficial initiatives like for example free healthcare for all.
In Ireland they have, do and will divy it up amongst the gombeens, politically connected and the rent-seekers.
How are multinationals stealing money from your country?
That’s not the fault MNC, that’s the fault of Irish politicians and the people that vote them in, i.e., the Irish electorate.
This isn’t the first time you contributed to this tread so you know damn well how they are doing it but here is a refresher
theguardian.com/business/ire … ns-bermuda
So Google operates within the law and you call that stealing?
BTW, The Guardian are also guilty of the same ‘sin’ as they accuse Google of.
When a Government sells it’s soul to you then you can make anything legal irrespective of how morally despicable it may be.
The government will never sell its soul to you, what they want is you to sell your soul to them.