Apple’s final settlement with European Commission expected to be around $16B in taxes owed
Apple is said to owe 13 billion euros (estimated $16 billion USD) to Ireland, according to the country’s tax collectors, Reuters reports.
Payment schedule finally agreed for Apple’s Irish back-tax bill, starting in March
It’s now 17 months since EU regulators ordered Ireland to recover €13B ($15B) from Apple in underpaid taxes, and a payment schedule has finally been agreed on.
Payments will begin in March, and continue through to September, meaning that the bill will finally be settled in full some two years after the ruling. That won’t, however, be the end of the matter …
Apple strikes interim deal on escrow fund for $15B Irish tax claim [U]
Update: The two parties may have agreed terms for the escrow account, but Reuters reports that they have yet to agree a date for Apple to begin transferring funds into it.
The EU ruling that Ireland offered illegal state aid to Apple, and must recover €13B ($15B) in underpaid taxes, marked the end of a long-running investigation – but not the end of the dispute …
Opinion: Latest controversy illustrates need for Apple to avoid appearance of tax avoidance
Apple is once again being accused of tax avoidance. This time, it’s analysis of the so-called ‘paradise papers,’ a massive leak of financial documents relating to countries commonly used as offshore tax havens.
The BBC claims that, once Apple was unable to use an Irish tax arrangement to reduce its tax obligations, it looked for a similar arrangement elsewhere.
The world’s most profitable firm has a secretive new structure that would enable it to continue avoiding billions in taxes, the Paradise Papers show.
They reveal how Apple sidestepped a 2013 crackdown on its controversial Irish tax practices by actively shopping around for a tax haven. It then moved the firm holding most of its untaxed offshore cash, now $252bn, to the Channel Island of Jersey.
This is just the latest in a long history of tax avoidance allegations against the company …
NYT: Apple shifted offshore cash hoard to Jersey after Ireland shut down [update]
Update: Apple has responded with an extensive statement on its newsroom site. It says corporate tax rate on foreign earnings is 21 percent, and 35 percent on income from overseas investments. It says “no operations or investments were moved from Ireland”.
The New York Times has published a lengthy report claiming Apple started using the island of Jersey as a tax haven after its tax arrangement in Ireland came under fire. The report, which is based on leaked corporate documents, says Apple settled on Jersey which doesn’t usually tax corporate income after shopping around.
Once more, the ‘final’ decision on Apple’s Irish data center may not be …
Planning approval for Apple’s Irish data center has so far taken more than two-and-a-half years. The project has in that time been approved three times. On each of the two latest occasions, it had looked like that was the final approval, but once more it appears that the fat lady hasn’t yet sung …
Irish government says it will collect the €13B ($15B) back-tax from Apple but under protest
The Irish government has said that it will comply with an EU ruling and collect €13 billion in back-tax from Apple, but is doing so under protest …
Exclusive: Apple Pay to launch in Ireland tomorrow with support from at least two banks
Apple will launch its mobile payment platform Apple Pay in Ireland tomorrow we have learned from two separate sources with knowledge of the matter. The move comes as we’re also expecting a launch sooner rather than later in Taiwan. Apple Pay allows users to complete transactions in-person, online, and in-app with their iPhone, iPad, Apple Watch, or Mac.
In Irish tax appeal, Apple accuses European Commission of ‘fundamental errors,’ makes 14 objections
The European Courts of Justice has now published Apple’s appeal against a European Commission ruling that it must pay Ireland €13B ($13.7B) in underpaid tax. Apple accuses the EC of ‘fundamental errors’ in its interpretation of the facts and lays out no fewer than 14 different objections.
Apple’s appeal document is best described as an aggressive defence …
Majority of Irish voters back Apple and Irish government in opposing EU tax ruling – poll
A poll for the Irish Times found that the majority of Irish voters believe that the government is right to join Apple in appealing against the EU ruling that the Cupertino company must pay €13B ($14.5B) in back taxes.
Apple’s lack of lobbying presence in Europe left it in dark over tax investigation for two years – WSJ
Apple’s lack of lobbying presence in Europe left in largely in the dark about the long-running investigation into its Irish tax arrangements, argues the WSJ. It has been ruled that Apple underpaid tax in Europe to the tune of €13B ($15B).
Apple’s effective Irish tax rate of 0.005% described as ‘brazen’ and ‘unsustainable’
After it was revealed that Apple paid an effective tax rate on its European profits of just 0.005% in 2014, a local tax and advisory firm has said that while other multinational companies had similar arrangements with Ireland, Apple’s deal was ‘the most brazen.’ The comment was made by Aisling Donohue, a partner at tax and business advisory firm MGPartners, reports Bloomberg.
The European Commission yesterday ordered the Irish government to recover €13B ($15B) in taxation from Apple after it was ruled to have offered the company illegal tax breaks. Apple is appealing the ruling.
Netflix says that it believes that the type of tax avoidance measures employed by Apple and other U.S. tech companies are ‘unsustainable’ …
Apple defends Irish data center plans, says will meet needs for 10-15 years, be green [U]
A solar array at one of Apple’s existing data centers in North Carolina
Update: Business Insider reports that the decision has been further delayed. The planning body An Bord Pleanála has said that it won’t be able to reach a decision now until 11th August as it needs more time to consider the impact of the infrastructure needed to support the data center.
Apple has responded to environmental objections to its planned $950M data center, arguing that the proposed development is necessary, would meet projected demand for the next 10-15 years, and would pose no risk to the local environment.
Although Apple was initially given the go-ahead for the center, construction had to be delayed when appeals against the decision were filed. The planning body, An Bord Pleanála, asked Apple to respond to five concerns, and Business Insider has now seen a transcript of the company’s oral response …
Apple denies illegal state aid in Ireland, says it will stay there whatever happens
Called before the European Parliament’s tax committee yesterday to explain its tax arrangements, Apple’s VP of European operations denied that the company received illegal state aid, reports Bloomberg.
“We feel that we’ve paid every cent of tax that is due in Ireland,” Cathy Kearney said at the European Parliament in Brussels. “We don’t feel that there has been state aid involved and I suppose we look forward to that outcome happening at the end of the day and being vindicated in that way. I would say that the Irish government also agrees with that view.”
Kearney also denied suggestions that the special tax deal with the Irish company was the reason it had chosen the country as its European HQ …
Irish planning body asks Apple to address five concerns before it decides on proposed data center
Update: Galway Independent (via Business Insider) reports that a hearing date has now been set, for Tuesday 24th May. The venue has not yet been confirmed.
Apple’s plan to build one of the world’s largest data centers in Ireland hit a stumbling block earlier this month when local residents filed objections. The planning body, An Bord Pleanála, said that it would be pushing back its decision from February to May in order to consider those objections.
Business Insider reports that An Bord Pleanála has now written to Apple’s consulting engineers, asking them to address five concerns …
Hackers reportedly attempting to bribe Apple employees for login details, offering $23k
Apple employees in Ireland have been offered €20,000 ($23,000) for access to the login details, reports Business Insider, citing a current and former employee.
“You’d be surprised how many people get on to us, just random Apple employees,” the source said. “You get emails offering you thousands to get a password to get access to Apple. I could sell my Apple ID login information online for €20,000 (£15,000 / $23,000) tomorrow. That’s how much people are trying.”
Apple’s Irish data center faces delays as citizens raise concern over environmental impact on local wildlife
Last year it was announced that Apple was planning a major new data center for County Galway in Ireland, as well as one in Denmark, both set to begin operations in 2017. According to a new report from Business Insider, however, Apple’s plans for the Irish data center have hit a speed bump. The report claims that the company’s $928 million dollar center has been put on hold due to complaints from the community.
Tim Cook meets with European Commission antitrust chief ahead of possible $8B tax bill
Tim Cook this week met with the European Commission’s antitrust chief Margrethe Vestager, Bloomberg reports and Kristin Huguet, a spokeswoman at Apple, confirms. The Cupertino based company is fighting back against contentions that they have formed a special agreement with Ireland in which they pay significantly lower taxes to the country’s government. The news also appears to coincide with Tim Cook’s announcement in launching an iOS development center in Italy.
Apple employees at headquarters in Cork, Ireland evacuated following bomb threat [Update: All clear!]
[Update: Apple has confirmed plant evacuation of Cork facilities following ‘threatening emails’ the company received. The situation has now been dealt with and employees are returning to work.]
According to local news, Apple’s plants in Cork, Ireland have been evacuated following a potential security threat in the area. Around 4000 workers have been told to leave premises at Apple’s facilities in Lavitts Quay, Hollyhill and Model Farm Road. Although details are scarce, Defence Forces told The Independent that explosive ordnance disposal teams are on standby in case they are needed. Employees have been waiting outside for over 2 hours now, as local ‘Gardai’ police respond to the bomb threat.
Apple could owe more than $8B in back taxes if European Commission ruling goes against it – Bloomberg
With a recent European Commission ruling making it look more likely than ever that Apple’s tax arrangements in Ireland will be declared illegal, Bloomberg has been doing the sums on how much the company may owe in back tax. The total? More than $8 billion.
Apple funnels all its European revenue through Ireland, where a special agreement with the Irish government means that it pays just 2.5% tax instead of the normal 12.5%. A long-running European Commission investigation into the legality of this arrangement was recently extended and expanded its scope.
Assuming the agreement is ruled to be illegal, it would be the Irish government – and not Apple – who broke the law, but Apple would still have to pay the difference between the tax it actually paid and the full amount that would have been due without the deal. The company warned shareholders last year that it may have to pay ‘material’ back taxes, but the figure calculated by Bloomberg is much larger than earlier estimates …
Belgian ruling increases likelihood that AAPL’s sweetheart tax deal in Ireland will be ruled illegal
The European Commission has ruled that tax breaks offered by Belgium to multinational companies are illegal, and that the companies concerned must pay the full rate of tax due in the country, reports VentureBeat. This follows similar decisions in Luxembourg and the Netherlands.
While none of these rulings directly impact Apple, they do make it look extremely likely that the Commission will reach the same decision in Ireland, where Apple pays just 2.5% corporation tax instead of the normal 12.5%.
The Irish government offered Apple the special deal in order to encourage the company to choose the country as its European headquarters. The European Commission has been running a lengthy investigation into the legality of this arrangement, and has recently extended and expanded its scope.
If Ireland is indeed found to have broken the law, Apple will have to pay the difference in tax for up to ten years. The total amount was estimated last year at $2.5 billion. Apple warned shareholders at the time that it may face ‘material’ back taxes should the decision go against it.
The EC isn’t the only entity unhappy with Apple’s tax arrangements in Ireland either. The Italian government accused Apple of failing to declare more than $1.3 billion of corporation tax in the country as a result of funneling profits through to Ireland. Apple, which has 16 retail stores in the country, recently agreed to pay the full €318M ($347M) claimed by the Italian tax office.
Photo: AP Photo/Rick Rycroft
European investigation into legality of Apple’s tax arrangements in Ireland expanded & extended
The long-running investigation into the legality of Apple’s tax arrangements in Ireland has been expanded, with the European Commission now seeking additional information from the Irish government, reports the FT. This means that the investigation is likely to be extended well into next year. A ruling had originally been expected before the end of the year.
While Irish authorities had expected the case to be concluded soon, they have instead been sent bulky sets of supplementary questions, meaning it will be difficult to reach a final verdict until after the 2016 election, which is expected as early as February […]
The Irish finance ministry confirmed that the government was supplying the requested additional information to the commission. “We do not expect any decision until after the new year,” said a spokesman.
If the ruling goes against Apple, it could face a bill for billions of Euros in underpaid tax …
Apple bringing 1,000 new jobs to Ireland, where Tim Cook describes Microsoft’s Surface Book as “deluded” [Updated]
Update: Apple has since stated that Cook intended to describe the Microsoft Surface Book as “diluted” rather than “deluded.”
The Irish government has announced that Apple will be employing an additional 1,000 staff in Ireland, the country where the company declares much of its revenue from sales throughout Europe, reports Reuters.
Ireland’s main foreign investment agency, the IDA, said Apple was to add 1,000 jobs to its office in Cork by mid-2017 from 5,000 at present. It said the company had also added 1,000 jobs in the past year.
There had been some concern about whether Apple would maintain a significant presence in the country if the European Commission investigation into Apple’s tax dealings in the country went against the company …
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iPhone 6s/Plus goes on sale in 36 more countries today, with a further 6 tomorrow
Apple’s rollout of the iPhone 6s/Plus beyond the dozen launch countries kicks off today, with customers in 36 more countries able to get their hands on the new devices. This follows Apple making SIM-free phones available in the USA.
The countries are Andorra, Austria, Belgium, Bosnia, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, Greece, Greenland, Hungary, Iceland, Ireland, Isle of Man, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Maldives, Mexico, Monaco, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland and Taiwan.
Those in Bahrain, Jordan, Kuwait, Qatar, Saudi Arabia and United Arab Emirates will have to wait until tomorrow, while there’s a further week to go before sales open up in India, Malaysia and Turkey. Apple has promised that the new iPhones will be on sale in over 130 countries by the end of the year.
Apple sold more than 13 million iPhones in the opening weekend. If you’re still on the fence, some recent pieces that may help are my iPhone 6s diary, a video of the best 3D Touch features, plus a comparison video and opinion piece on the 6s versus 6s Plus.