Taxes Stories January 27

AAPL: 93.42

-6.57
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A report earlier this month from Bloomberg claimed that Apple could owe more than $8 billion in back taxes if the European Commission rules that its Ireland setup is illegal. Speaking to the Financial Times today, Apple CFO Luca Maestri commented on the ongoing European investigation and said that he estimates Apple will have to pay $0 in back taxes, assuming the investigation outcome is “fair.”

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Taxes Stories January 21

AAPL: 96.30

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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.

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Taxes Stories December 30, 2015

AAPL: 107.32

-1.42
Stock Chart

Apple, which was accused by the Italian government of failing to declare more than $1.3B of income when paying corporation tax in the country, has now agreed to pay the full €318M ($347M) claimed by the Italian tax office. The company has 16 Apple Stores in Italy.

Apple was accused of funnelling profits from Italian sales through its Irish subsidiary in order to benefit from the lower tax rate the company had agreed there. (Those tax arrangements are the subject of a separate EU investigation.)

La Repubblica (via The Local) reports Apple Italia was listed as a “consultant” for Apple Ireland, enabling the company to book profits through Ireland, paying just 2.5% tax under the terms of an agreement said to have first been reached with Steve Jobs back in the 1980s …

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Taxes Stories June 1, 2015

AppleHQCorkExam010615d_large

Irish Examiner got an inside look at Apple’s EU headquarters in Cork along with some interviews with employees there. The campus holds around 4,000 Apple employees that the report points out span across support services, distribution, mapping and manufacturing. expand full story

Taxes Stories April 29, 2015

Apple's European HQ in Cork, Ireland
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Following its announcement of record Q2 earnings, Apple published its quarterly 10-Q report, providing more in-depth details about finances. Notably, the company warns of the possibility of “material” back taxes due to the company’s well-documented favorable tax arrangements with Ireland.

On June 11, 2014, the European Commission issued an opening decision initiating a formal investigation against Ireland for alleged state aid to the Company. The opening decision concerns the allocation of profits for taxation purposes of the Irish branches of two subsidiaries of the Company. The Company believes the European Commission’s assertions are without merit. If the European Commission were to conclude against Ireland, the European Commission could require Ireland to recover from the Company past taxes covering a period of up to 10 years reflective of the disallowed state aid. While such amount could be material, as of March 28, 2015 the Company is unable to estimate the impact.

Apple will need to pay the fines if the European Commission, which is akin to the U.S.’s SEC, rules that Ireland granted Apple special privileges for reduced taxes. As the European Commission has not made any formal rulings on the fine, Apple says it could not estimate the impact. However, the Financial Times pegs the potential payments at $2.5 billion based on Apple’s current rate of profits.

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Taxes Stories January 7, 2015

Apple has sent an email to developers informing them of upcoming changes to app pricing in Canada, the European Union, Norway, Iceland, and Russia. These changes, which take effect later this week, are not the same as the recent change to country-specific VAT rates, and impact a wider range of markets.

The pricing updates are being implemented to accommodate changing tax and currency exchange rates. Prices will go up for customers in all of the affected countries except Iceland, which will see a decrease. Russia’s prices will “change,” according to the email, but there aren’t any additional details on what that may mean.

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