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
At least Apple still exists to possibly reclaim tax from. The investment vehicles for S110 will disappear in to the ether by the time the E.U. get around to reviewing them.
TTIP blowing up.
US fines VW.
EU fines Apple.
This is huge and I am loving it. Chickens finally coming home to roost etc…
You could build 52,000 council houses for that.
Why are you giving them newspapers ideas for headlines
I don’t understand the official policy on this at all.
We have selective tax agreements with various foreign companies. The EU have found that at least one of these amounts to “undue tax benefit” and back tax should be paid. Official Ireland denies this ruling. They are going to lodge an appeal.
Apparently its up to Revenue to decide on the actual back taxes to be levied on Apple. Why don’t we just “settle” with Apple for a couple of hundred million? This is piss money to Apple. We don’t have to agree with the ruling. Just do what the UK did with Google - settle and the headlines will go away in a week or so.
Lodge an appeal and its guaranteed to be in the news for the next couple of years until the appeal is heard? Plus the political fall out will continue until the next GE.
I think it’s because they’ll have to start paying tax on future profits too that’s the problem.
The rules changed in 2014 so future profits are not an issue. We can’t just “settle” for a small amount. That’s what the whole ruling is about. We have to charge Apple the same as other companies were charged. Which is €13bn plus interest.
We’re in the money, we’re in the money…!!!
FF blew it…Enda gets a large whack of it back. Fair play Enda…it’s Mayo’s year!
If a rule change ensured this is cleaned up in the future for Apple and any other company surely the official stance should be to go for whole €13bn, albeit it might be advantageous to appear reluctant.
I would have thought the only reason to be so horrified at receiving such a gigantic windfall was that it might harm future investment decisions?
Are you sure? As it currently stands I don’t think the EU can impose a tax penalty for a member state - it’s up to the individual state to run their own taxation. Until there is tax harmonisation across the EU that is.
The State already “settled” with Apple when these arrangements were set up originally. The point is that this has been deemed to be illegal state aid, so another small settlement would also be illegal state aid.
The policy is quite simple and consistent (excepting S110 vultures). Company with no profitable operations in Ireland negotiates tax-free deal with Irish govt on the basis that the alternative is to locate elsewhere (and therefore also pay no Irish tax). Irish govt agrees to it on the basis that it might employ a few accountants and attract other taxable activity (other explanation is that State is captured by accountants/law firms).
Of those two explanations I find the second one more compelling (there might also have been actual corruption i.e. brown envelopes, who knows) since I really don’t see that a few million in tax is worth the diplomatic hassle, although presumably at the time the arrangements were set up the loons thought they could get away with it on the basis that tax affairs are sovereign.
At this stage it’s hard to see why the Irish govt should appeal in the face of 19bn or whatever. There’s no way that a reputation as a tax haven is worth 19bn. I don’t know whether there’s some perverse honour thing going on, it’d be a first in politics.
Maybe this is all a total sham and the Irish govt are secretly colluding with the Eurocrats “oh no, please don’t make us take the money” with a view to keeping both the money and their reputation intact once the appeal gets rejected.
Feels a bit like the ending to Shallow Grave.
Clear political motivation in the press release - the commission are really on the warpath here:
deliberately confusing two issues - state aid via special arrangements for one company (everyone can agree on that) vs. the generalities of tax reflecting economic reality of transactions (on which there is substantially more debate)
outright encouragement to other countries to retroactively tax Apple sales in their own country (they are recorded in Ireland at the moment), dangling the carrot of getting some of this money if they do.
Right, so basically it’s going to be an EU/US slush fund.