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Thread: European Commission to Come Down on Apple for Tax Avoidance Strategies in Ireland

  1. #1
    What's Jailbreak? Akshay Masand's Avatar
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    Default European Commission to Come Down on Apple for Tax Avoidance Strategies in Ireland

    According to people who claim to be familiar with the matter, regulators are set to detail the tax deals given to Apple in Ireland that violate the European Union (EU) laws. For those of you who didn’t know, the European Commission began formal investigations into the tax avoidance issue previously with plans to publish its findings in the near future. The findings look like they will claim that tax deals between both Apple and Ireland could fall under the heading of illegal state aid. If this turns out to be true, Apple will be responsible for paying back any unpaid taxes, a number which could be in the billions.

    Although Apple hasn't commented on the matter, the Irish government has responded by describing its position as “confident” that Apple deal represents “no breach of state-aid rules.” The Irish government claims that it has already submitted a formal response to the European Commission where it addresses in detail “the concerns and some misunderstandings.” Despite the confidence, many continue to believe that Apple's strategy in the matter is one that involves tax avoidance, a move which the company shoud be penalized for.

    We’ll have to wait and see what happens but things could go either way pretty fast. Apple CEO Tim Cook visited the Irish prime minister earlier this year to discuss Apple’s presence in the country. Among the list of things to discuss was the Irish tax laws that help the Cupertino California company avoid paying billions extra. This wouldn’t be the first time either as Apple has been under the limelight for tax practices before involving the channeling of 64% of earnings into Irish subsidiaries with zero employees in order to minimize tax burdens.

    Irish officials avoided accepting any blame for the Cupertino California company’s low tax bill while Tim Cook and Peter Oppenheimer (who was the CFO at the time) appeared before a Senate sub-committee to discuss tax avoidance. It should be noted that Apple itself isn’t under investigation but the arrangement as a whole falls under the bracket of state aid which could force Apple to pay any unpaid taxes. As of right now, Apple will get 30 days to respond to EU’s decision once it’s made.

    Source: The Wall Street Journal
    Last edited by Akshay Masand; 2014-09-29 at 08:35 PM.

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  2. #2
    Livin the iPhone Life Carvensno's Avatar
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    All of the fortune 500 companies do this same stuff.

  3. #3
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    Quote Originally Posted by Carvensno View Post
    All of the fortune 500 companies do this same stuff.
    No, not quite. Not all of the Fortune 500 companies engaged in secret backroom deals with the Irish Government.

    It's one thing to use tax loopholes to avoid paying tax. It's another thing to set up illegal deals with a specific government.

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