Apple obliged to pay a tax of 13 billion euros

Apple is obliged to pay retroactive tax in the amount of 13 billion euros for the profit made in Europe between 2003 and 2014 and improperly taxed by Ireland. Yesterday I told you that a decision of the European Commission decided that Apple benefited from illegal aid from the Irish government regarding the reduction of the profit tax.

Apple paid a profit tax of only up to 0.005% instead of 12.5%, which the rest of the companies pay, and the European Commission considers that the unpaid money as part of it should be recovered. Now the European Commission claims that Ireland must recover 13 billion dollars from Apple as taxes applied retroactively on the profit made by the Americans.

Margrethe Vestager, the European commissioner for competition, led this investigation that lasted almost 3 years, and in the end it seems that Apple comes out the loser. 13 billion dollars is a very large amount and Apple will probably appeal the decision, and in the end it could pay much less than the amount requested by the authorities.

Apple made a profit of 64 billion dollars in Europe between 2003 and 2014 through its subsidiary in Ireland, which controls its entire European activity. Those from the European Commission know this and now demand that the Americans pay exactly what is normal for the huge profit made in the 8 years on the European continent.

"Member states cannot grant tax benefits only to certain companies, this practice being illegal according to European legislation. The Commission's investigation established that Ireland had illegal tax facilities for Apple, which allowed the company to pay substantially lower taxes than other companies, for many years. This preferential treatment allowed Apple to pay corporate taxes of 1% on profits from 2003 and only 0.005% on profits from 2014."

Basically, Apple has probably benefited from the lowest corporate taxes applied for any company that is active in Europe at the moment. Since the European Commission claims that Apple paid taxes for the profit of 2014, which represents only 0.005% of it, it is clear that we are talking about a very complex financial engineering.

Those from the European Commission say that Apple attributed the majority of its profit to a company that exists only on paper, without having any headquarters on this planet. The profit of Apple Sales International and Apple Operations Europe attributed to this company remained untaxed for 1 year, so the amount of taxes was considerably reduced.

Although we are talking about 13 billion dollars that the European Commission wants recovered from Apple, those from Cupertino and the Irish government could reach an agreement to reduce the amount. Of course, the European Commission will have to agree to this agreement, otherwise there is the risk of new investigations and much higher fines.

UPDATED: Apple announced that it will appeal the decision of the European Commission.

Apple financial engineering

 

14 COMMENTS

  1. Dacă este adevărat ca nu au plătit impozitul corect ! Ar trebuii sa il plătească, altfel ar fi bun un boicot la nivelul Europei !! Sa nu mai cumpere nimeni iPhoane :)))

  2. Or sa plateasca , acum ca acordul commercial SUA-UE a esuat .
    Srb – vinde-ti repede actiunile Apple , ca nu ii vad bine platind 13 miliarde din cele doar 16 pe care le au disponibile .
    Si cred ca nu or sa mai aiba nici bani ca sa aduca ceva mai de doamne ajuta in iPnone-ul ala aniversar . Poate ala o sa fie si ultimul lor iPhone – sau poate asta de acum- LOL .

  3. Hmmm – dar stai – ca la astia 13 miliarde se vor adauga dobanzile . Si 13 miliarde euro fac 14,5 miliarde US $ . Cu dobanzi , e grav – Apple nu are bani sa plateasca .
    Cred ca in curand vorbim la trecut de Apple , ca de Blackberry sau Nokia .

  4. “The company revealed that its cash pile once again topped $200 billion, hitting $205.7 billion for the fiscal fourth quarter” Data viitoare mai informeaza-te

  5. To put that in perspective, if you took Apple’s total cash pile and stacked it up in $1 bills, the pile would stretch almost 14,000 miles.

  6. Vise . A pus zaone odata un articol care explica ce inseamana cei 230 miliarde $ rezerva ai Apple . In concluzie , lichiditati sunt 16 miliarde $ , care nu acopera ce trebuie sa plateasca acum . Restul sunt datorii , rulaj , etc .
    Vrei sa ramai cu actiunile – treba ta . Eu ti-am dat un sfat parintesc . Inteleg ca la varsta ta , crezi ca Apple e vreun Dzeu ( ca si tine) – dar ti-am mai recomandat sa iesi de la pubertate .

  7. Ma intreb de ce ai sters linkul pe care l-am pus si care ii dadea dreptate lui @Sorin. Ai pus o intrebare, ti-am raspuns. Nimic deosebit. Asta in timp ce altii sunt lasati sa jigneasca fara sa fie “moderati”. Doar pentru ca fac trafic

  8. Care este cea mai puternica tara europeana din punct de vedere financiar? Germania?
    Care este cea mai de succes industrie a Germaniei? Cea auto?
    Ce inseamna atunci cand SUA ataca direct industria auto europeana? Naspa?

    Cred ca dosarul Apple este unul politizat. Voi credeti ca UE nu stia ce face Apple in Irlanda?? Este Irlanda un fel de Insula Mare a Brailei, fara ca nimeni sa nu stie ce taxe sunt acolo? Dar nimeni nu s-a sesizat din 2002 si pana acum ca Apple plateste bani de guma de mestecat in fiecare an?
    UE s-a inflamat acum ca urmare a sicanelor americanilor cu Dieselgate. Cred ca mesajul poate fi: uite SUA, ca si noi v-am acordat multe avantaje, incercati sa nu ne distrugeti industriile noastre de succes, ca putem si noi sa actionam asemenea.

    Desigur ca asta nu exonereaza Apple de la plata impozitelor restante, insa daca este sa privim problema dosarelor, uite ca se vede altfel dintr-un alt unghi.