Ireland could face a fine of €1,000,000,000 (yes, one billion) in EC Apple probe

My name is URL · 30-09-2014 07:50PM #1

The $8 billion in back taxes that Apple could owe in the wake of a preliminary report by the European Commission (EC) on Tuesday would be dwarfed by the amount Apple saved through tax deals that the company struck with the Irish government over the past three decades.

Ireland’s 12.5 percent corporate tax rate is low by international standards, but a U.S. Senate subcommittee found last year that Apple has managed to pay an effective tax rate of less than 2 percent and even no taxes on some profits in Ireland.

If the EC decides the tax deal is state aid to Apple, it could fine Ireland up to $1.26 billion and Apple up to 10 percent of its revenue, which could amount to $17 billion. But the preliminary report suggests that the EC would seek “recovery of the aid,” which could be about $8 billion or billions more, depending on how many years of back taxes the EC would seek.

http://www.ibtimes.com/apple-inc-could-owe-8-billion-back-taxes-eu-1697030

What's everyone's take on this? I'm noticing a lot of people who are usually very pro EU, now saying they should mind their own business.. which is a bit ironic really.

Is expecting huge companies to pay their fair share of taxes really a bad thing?

donvito99 · 30-09-2014 07:53PM

http://upload.wikimedia.org/wikipedia/en/1/16/Drevil_million_dollars.jpg

frozenfrozen · 30-09-2014 07:54PM

they can take the roads back, we haven't got a ****ing billion to give them!

Remmy · 30-09-2014 07:55PM

My mind plays elevator music when I see that many zeros

ted1 · 30-09-2014 07:56PM

But we'll also get several billions in back payment, but end up with several hundred thousand in the dole if FDI pulls out

Specialun · 30-09-2014 07:57PM

We give them a bendy iphone instead

kippy · 30-09-2014 07:57PM

ted1 wrote: »

But we'll also get several billions in back payment, but end up with several hundred thousand in the dole if FDI pulls out

Not sure why this would lead to all FDI pulling out but anyway.

My name is URL · 30-09-2014 07:58PM

ted1 wrote: »

But we'll also get several billions in back payment, but end up with several hundred thousand in the dole if FDI pulls out

It doesn't mention that in any articles. They suggest that the EC would be the ones receiving back payments from Apple through fines.

I think, but am open to correction, that if Ireland granted state-aid to Apple and agreed to them paying the tax they paid; then we have no real entitlement to any back payment.

efb · 30-09-2014 07:59PM

If apple are given that much how much are Intel, Dell et al given?

I worry for Irish jobs. Burosso & Amunia are only taking care of Portugal

Agent Coulson · 30-09-2014 07:59PM

Europe now know if they say bend over and take your punishment, Ireland will bend over and say thank you.

EyeSight · 30-09-2014 07:59PM

To pay it we could start charging people for water!

wait...

ted1 · 30-09-2014 08:00PM

kippy wrote: »

Not sure why this would lead to all FDI pulling out but anyway.

Because the cost of doing buisness will increase. Double Irish loophole will be closed.

Fukuyama · 30-09-2014 08:00PM

8-1=7

So the Irish have pulled off the biggest €7 Billion stroke in history. Should we stick it in the poor box or keep it?

kneemos · 30-09-2014 08:01PM

Why don't they close the loopholes instead of concentrating on a thirty year old deal?

fleet_admiral · 30-09-2014 08:02PM

Im beginning to wish the EU would kindly F off

Kermit.de.frog · 30-09-2014 08:03PM

It's far more likely Apple would have to pay the Irish government in back taxes.

ted1 · 30-09-2014 08:04PM

fleet_admiral wrote: »

Im beginning to wish the EU would kindly F off

Me too. Allowing access to our water should be considered state aid too.

Iwasfrozen · 30-09-2014 08:04PM

Maybe we should hold a referendum at the same time as the British?

jodaw · 30-09-2014 08:04PM

The EU. A great bunch of lads!!!

mikom · 30-09-2014 08:05PM

Enda Kenny says Knowledge economy when shitting on about Apple/twitter/google/ linkedin and Ireland.
All I see is............

https://www.youtube.com/watch?v=DqW_5vTBAXw

My name is URL · 30-09-2014 08:06PM

Kermit.de.frog wrote: »

It's far more likely Apple would have to pay the Irish government in back taxes.

Why so? It's not as if Apple have been hoodwinking us for the last 30 years. The Irish government of the day are the ones that brought that deal to the table!

Cuddlesworth · 30-09-2014 08:07PM

My name is URL wrote: »

I think, but am open to correction, that if Ireland granted state-aid to Apple and agreed to them paying the tax they paid; then we have no real entitlement to any back payment.

Yep, when the lawyers are done with it and it gets handed to tax consultants it will all drift away. This is between Ireland and the EU.

the groutch · 30-09-2014 08:10PM

My name is URL wrote: »

It doesn't mention that in any articles. They suggest that the EC would be the ones receiving back payments from Apple through fines.

I think, but am open to correction, that if Ireland granted state-aid to Apple and agreed to them paying the tax they paid; then we have no real entitlement to any back payment.

would the EC have any real entitlement to keep the 8bn though?

jodaw · 30-09-2014 08:12PM

the groutch wrote: »

would the EC have any real entitlement to keep the 8bn though?

Do you honestly think Ireland would have a say in keeping it?:D

My name is URL · 30-09-2014 08:19PM

the groutch wrote: »

would the EC have any real entitlement to keep the 8bn though?

I dunno how it'd work but presumably if they were to demand money from Apple it would be through direct fines for breaching antitrust laws and regulations rather than 'back-payment of taxes', so I guess they'd be entitled to do with it as they please as they are the ones responsible for enforcing such regulations.

fleet_admiral · 30-09-2014 08:19PM

Apple apparently has assets of 652 billion dollars. 8 billion should be a drop in the ocean for them

The government should use the money to build the underground

Tail Docker · 30-09-2014 08:25PM

fleet_admiral wrote: »

Apple apparently has assets of 652 billion dollars. 8 billion should be a drop in the ocean for them

The government should use the money to build the underground

Yeah? Not put it back into the pension fund they decimated bailing out their buddies?

Iwasfrozen · 30-09-2014 08:26PM

fleet_admiral wrote: »

Apple apparently has assets of 652 billion dollars. 8 billion should be a drop in the ocean for them

The government should use the money to build the underground

The government should use the money to pay off 4.4% of our debt...

C.K Dexter Haven · 30-09-2014 08:30PM

frozenfrozen wrote: »

they can take the roads back, we haven't got a ****ing billion to give them!

So, that'll be the Dundrum section of the Luas line. Yeah, I can live with that.:cool:

Tin Foil Hat · 30-09-2014 08:33PM

fleet_admiral wrote: »

Im beginning to wish the EU would kindly F off

Only now?
Anyone who ever thought that centralising decision making for 27 countries in the German Chancellors office would work in the interests of a small island floating behind another island out in the North Atlantic has an underpants on their head and two pencils up their nose. It is, and always was, an absolutely fukking stoopid idea.

The Diabolical Monocle · 30-09-2014 08:42PM

Tin Foil Hat wrote: »

Only now?
Anyone who ever thought that centralising decision making for 27 countries in the German Chancellors office would work in the interests of a small island floating behind another island out in the North Atlantic has an underpants on their head and two pencils up their nose. It is, and always was, an absolutely fukking stoopid idea.

<

has an underpants on head.

Ireland could face a fine of €1,000,000,000 (yes, one billion) in EC Apple probe

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