Facebook hit with “material” IRS claim for 3bn-5bn (plus interest and penalties) over transfer of assets to Ireland
Story also carried by the Daily Mail website, describing Ireland as “a low-tax haven for corporations”
[Reader bias warning: the Daily Mail group is registered within walking distance of City of London, identified by an IMF report as “the world’s largest tax haven”]
EU law is actually quite simple for the laywoman to get the hang of.
Amazing how many get it wrong (cf Brexit debate, etc)
It is a wish list, but it has already been voted by the European Parliament, agreed by the council and published in the Official journal of the EU:
eur-lex.europa.eu/legal-content/ … 16:193:TOC
It asks for the Commission to publish an ambitious CCCTB proposal as soon as possible.
I would be interested to know how the council vote went on this. The environment is going to be more hostile to Ireland with departure of the British.
We can just start giving all sorts of exemptions and loopholes like the French and Germans do
And that is why the cage will be rattled but nothing happens. Much larger entities in the big EU countries would have their favourable tax offsets scrutinized. We low but we’re low for everyone.
The US Treasury Department has upped the pressure on Europe over the Commission’s investigations into the tax relationship between five large companies and a number of EU member states.
In a white paper issued on its website, the Treasury Department calls on the Commission not to impose recoveries in a retroactive manner from the companies under investigation, including Apple, Starbucks and McDonald’s.
Ruling from Europe due in the next few days. Amount of back taxes has been revised downwards, possibly as low as €100m.
At those levels the government could probably find a way to give it back to Apple in employment or construction grants. I’m sure it’s a coincidence that Apple’s new data centre just go the go-ahead.
All the reporting around Apple is basically “uh-oh, we might be able to claim a huge tax settlement from Apple, that’s bad news”.
Says a lot for the shape of the world and the balance of power.
Latest conditioning exercise leak is the number will be in the billions
Surely Noonan or the head of Revenue have to walk the plank ?
We’ve had tribunals and Judicial Inquiries about less
You think big Mickey thought up this deal? “Surely Jurry has to go now”…
I agree, though, that the origins of the deal should be exposed…
By time the tribunal is done 20 years later everyone would have forgotten about it, few barristers would much richer, and Apple might no longer exist or be relevant as a company.
Please no more tribunals
€13bn in back taxes, Joe!
Tony Connelly @tconnellyRTE 6m
BREAKING: Commission to say “selective treatment” allowed Apple to pay tax rate of 1pc on EU profits in 2003 down to 0.005 per cent in 2014.
BREAKING: @EU_Commission has concluded that Ireland granted undue tax benefits of up to €13 billion to Apple. News conference due in 20 mins
The European Commission has concluded that Ireland granted undue tax benefits of up to €13 billion to Apple. This is illegal under EU state aid rules, because it allowed Apple to pay substantially less tax than other businesses. Ireland must now recover the illegal aid.
Commissioner Margrethe Vestager, in charge of competition policy, said: “Member States cannot give tax benefits to selected companies – this is illegal under EU state aid rules. The Commission’s investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years. In fact, this selective treatment allowed Apple to pay an effective corporate tax rate of 1 per cent on its European profits in 2003 down to 0.005 per cent in 2014.” …
good for the country’s coffers
Don’t forget the interest!
How is an ordinary decent tax haven supposed to go about the business of being a tax haven with those meddling EU bureaucrats getting in the way; don’t they know that once you have been bought that you have to stay bought and you can’t go reneging on under the table deals that you have made with flighty amoral multi-nationals as it is not good for business.
sent from my iphone5
.@vestager in 2011 for every million of euro made in profits, Apple paid just €500, extending to just €50 in 2014