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Major setback in Apple’s Irish tax battle; case now unlikely to be settled soon

Apple's Irish tax battle | EU flags outside Brussels headquarters

Apple’s Irish tax battle looked to have reached the end of the line when the case went before the European Court of Justice – the equivalent of the US Supreme Court. Whichever way the ECJ ruled, its decision would be final.

The ECJ was set to announce that result as soon as this month (though more likely early next year) – but this now looks unlikely, following a major setback to Apple and the Irish government …

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Apple tax increases delayed until 2024, as OECD says global tax deal behind schedule

Apple tax increases | Photo shows calculator in iPhone Control Center

Apple tax increases in Ireland and elsewhere were expected to take effect in 2023, but will now likely be delayed until 2024 as a result of slow progress on agreeing a global digital tax deal.

The delay is good news for Apple, whose European headquarters is based in Ireland, where it currently pays a tax rate of just 12.5% …

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Apple Irish data center plans seemingly revived after being abandoned

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The long-running saga of the Apple Irish data center appeared to be over in 2018, when the Cupertino company announced that it had abandoned its plans.

“Several years ago we applied to build a data center at Athenry. Despite our best efforts, delays in the approval process have forced us to make other plans and we will not be able to move forward with the data centre,” said the company in a statement.

However, the project appears to have been revived. Apple successfully applied for an extension to its planning permission, and stated in its application that it expects to build the center within the next five years…

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Apple’s European tax increase likely as Ireland expected to relent

Apple's European tax increase likely

Apple’s European tax rate is likely to increase from 12.5% to 15%, despite Ireland being reluctant to impose the higher rate.

Apple based its European headquarters in Ireland, and has historically funneled most of its revenue from all 27 EU countries through the country in order to benefit from the low rate of corporate tax charged there …

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Ireland doesn’t want to increase 12.5% tax paid by Apple, Google, and others

Ireland doesn't want to increase tax paid by Apple, Google and others

The 12.5% corporate tax paid by Apple, Google, Microsoft, and other companies to Ireland would have to end under a global tax plan orchestrated by the Biden administration – and the Irish government isn’t happy about it.

The G7 nations and the European Union reached agreement in principle that all member countries would impose a minimum corporate tax of 15%. Ireland had previously expressed concern about this, and now says it thinks the rate should be “negotiable” …

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EU makes its case for overturning the $15.8B Irish Apple tax ruling

EU appeal of Irish Apple tax ruling

The European Union has published a summary of its appeal against the $15.8B Irish Apple tax ruling that decided that the Cupertino company did not have to pay. The EU had argued that Apple had reached an illegal agreement with the Irish government, but a court disagreed.

The EU argues that the judges in that case used “contradictory reasoning” in reaching their decision …

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Apple Irish tax ruling – European Union files last-minute appeal

Apple Irish tax ruling

The Apple Irish tax ruling in July went against the European Union, the judge stating that it had failed to prove that Ireland offered illegal state aid to the iPhone maker. As we predicted then, however, the EU has now lodged an appeal.

The EU did wait until the last minute to do so, making the filing today, the last day of the appeal window …

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Europe hasn’t appealed Apple’s Irish tax ruling; deadline is Friday

Irish tax ruling - appeal deadline approaches

The Irish tax ruling in July went in Apple’s favor, with the court finding that the European Union had failed to prove that the tax deal Ireland offered to Apple was illegal, and therefore the company did not owe €13B ($15B) in back taxes.

It was widely predicted at the time that the EU would appeal the case. However, the deadline for doing so is this Friday, September 25, and so far no appeal has been lodged…

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Comment: Apple didn’t win the Irish tax case – the EU lost it (for now)

EU lost the Irish tax case

We today got a ruling in the long-running Irish tax case, but while we can say that Apple won the case, it would probably be more accurate to say that the European Union lost it. The court ruled not that the EU was wrong, but rather that it hadn’t proven its case ‘to the requisite legal standard.’

That’s a polite way for a judge to tell the losing side that they failed to properly prepare their case, and to imply that the outcome would have been different if they’d done their homework …


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Apple wins legal battle against EU order to recover $15 billion in Ireland tax case

In 2016, Apple was ordered to pay 13 billion euros to Ireland as repayment for back taxes at a rate that the EU deemed was illegal. Both Apple and Ireland appealed the judgment.

Four years on, the first round of legal battles have come to a conclusion today: the EU court rejected the ruling which essentially means Ireland and Apple won. However, the EU commission will almost certainly appeal. A final decision on a corporate judgment of this scale will take many, many, years to resolve.


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France going ahead with ‘Apple tax’ whether or not other countries agree

France going ahead with Apple tax

France has announced that it will go ahead with a so-called ‘Apple tax’ this year, whether or not an agreement is reached on an international proposal to ensure tech giants receive the same tax treatment across 137 countries.

France was the first European country to decide to impose a tax on the local revenues of Google, Apple, Facebook, and Amazon – after President Macron accused tech giants of having ‘permanent tax haven status‘ …


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137 countries start work on tax rules for tech giants; Tim Cook backs approach

start work on tax rules for tech giants

Officials from 137 governments have begun work on new international tax rules for tech giants. The new rules will be designed to ensure that tech companies pay tax in each of the countries in which they operate, preventing them from funneling profits through to a low-tax country.

This will impact companies like Apple, which used Ireland as its European HQ and funneled profits from Apple Stores throughout Europe…


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Tim Cook in Ireland to collect award, says global corporate tax reform needed

Tim Cook in Ireland

Tim Cook is in Ireland to receive an award in recognition of Apple’s 40 years of investment in Ireland. Apple’s CEO is set to collect that award from prime minister Leo Varadkar.

While there, Cook indirectly addressed criticism of Apple’s use of Ireland as its European HQ in order to reduce its tax bill in Europe…


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Apple and other tech giants to pay tax in each country they operate — OECD

Apple and others to pay tax in each country

Apple and other tech giants will in future be required to pay tax in each country in which they sell products and services. Apple, for example, will no longer be able to funnel profits from all European Apple Stores through Ireland as a means of avoiding tax in the countries where the products are actually sold.

The plans were announced by the Organisation for Economic Cooperation and Development (OECD), following more than 130 countries agreeing on the need for global tax reform…


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Apple’s appeal against €13B Irish tax ruling finally has a court date

Apple's appeal against Irish tax ruling has a court date

Apple’s appeal against the European Commission’s (EC) ruling that it must pay a massive €13B ($14.4B) in underpaid taxes to the Irish government will finally make it to court next month. The appeal has been scheduled for two days, on September 17-18.

Both Apple and the Irish government appealed the ruling that the sweetheart tax deal offered to the Cupertino company by Ireland amounted to illegal state aid…


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G20 agrees deadline for global tax crackdown on tech giants like Apple

G20 agrees tax crackdown on tech giants

The G20 has set a deadline for a two-prong tax crackdown on tech giants, which could hit companies like Apple, Amazon, Facebook, Google and Uber. The 20 members have agreed to put in place by 2020 measures to stop international companies using tax loopholes to pay less tax than locally-based companies.

One of the arrangements used by Apple has been cited as an example of this type of loophole …


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Bank of New York Mellon will administer escrow fund for Apple’s disputed back-tax bill

A bank has now been appointed to manage the escrow fund for the €13B ($15B) in back-taxes the European Union decided Apple had to pay to the Irish government.

It took some time to agree the arrangements as Apple expects to get the money back at the end of a legal battle expected to take many years, and it will want to ensure the funds have been well invested during that time …


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