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. Read more
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.
Apple has announced that it will be spending €1.7B ($1.92B) on two new European data centers, each of which will be among the largest in the world at 166,000 square metres (1.8M square feet)–three times larger than the company’s North Carolina facility.
One will be in Ireland, the other in Denmark, with each set to begin operations in 2017. Apple says that the facilities will provide online services across Europe, including the iTunes Store, App Store, iMessage, Apple Maps and Siri.
We are grateful for Apple’s continued success in Europe and proud that our investment supports communities across the continent,” said Tim Cook, Apple’s CEO. “This significant new investment represents Apple’s biggest project in Europe to date.”
As with all of Apple’s data centers around the world, the new centres will be powered entirely by clean, renewable energy … Read more
Two days after the Financial Times reported that the European Commission was about to come down hard on Apple’s alleged deal with the Irish government to reduce its tax liabilities, Apple has made a statement to Business Insider claiming that it has received “no selective treatment.”
Apple is proud of its long history in Ireland and the 4,000 people we employ in Cork. They serve our customers through manufacturing, tech support and other important functions. Our success in Europe and around the world is the result of hard work and innovation by our employees, not any special arrangements with the government. Apple has received no selective treatment from Irish officials over the years. We’re subject to the same tax laws as the countless other companies who do business in Ireland.
Since the iPhone launched in 2007, our tax payments in Ireland and around the world have increased tenfold. To continue that growth and the benefits it brings to the communities where we work and live, we believe comprehensive corporate tax reform is badly needed …
It looks like this week’s Apple “xxx-gate” is a big one with the Financial Times reporting that the European Commision is about to come down hard on Apple for its long held tax avoidance strategies in Ireland.
Typically the EU has used its state aid powers to address broader competition issues. But in the past year Brussels has attempted to target the tax affairs of companies such as Apple, Starbucks and Amazon. It is a novel application of the law with far-reaching implications, not just for the companies, or EU countries, but for EU-US relations in general.
This week the European Commission will publish the first findings in the Apple case. The details – including evidence from bygone tax negotiations – are likely to be explosive.
The US is no happier with Apple’s use of specially created Irish tax loopholes which allow it to avoid paying taxes it would otherwise be due. Apple CEO Tim Cook and other execs faced Senate Subcommittee questioning in May in which focused on Apple’s tax avoidance schemes.
Did Apple apply pressure to Irish authorities in 1991 and again in 2007 when negotiating tax deals and if so were these illegal competitive measures that gave Apple advantages over competitors? Luca Maestri, Apple’s finance chief, of course denies any wrongdoing… Read more
Apple is today touting a lot of new stats regarding Apple’s contribution to European economies. The company has done similar things for the United States, in the past. For Europe, Apple claims to have created or supported 629,000 jobs across Europe, with over 500,000 of those representing the ‘app economy’. Apple says this number is made up of employees whose jobs can be directly attributed to the App Store. Out of $20 billion in worldwide developer earnings, $6.5 billion has gone to European developers.
In 2014, Apple estimates the ‘app economy’ will add $86 billion to worldwide GDP this year. Aside from the App Store, Apple employees 16,000 Europeans directly and indirectly supports a total of 132,000 jobs elsewhere. The company has also calculated that 116,000 European jobs have been created at other companies as a result of Apple’s growth.
Apple is about to roll out its Volume Purchase Program, which allows business and education customers to purchase and distribute iOS apps in bulk for deployed devices, into 16 new countries. Apple’s website for both the Volume Purchase Program for Business and for Education have been updated to announce the expansion and now list the following countries as coming soon to the program: Read more
If Congress delivers on a proposed tax holiday, Apple could soon join a slew of American companies with large dollar amounts of offshore money eager to repatriate their earnings without being subject to the current corporate tax rate. News of the tax holiday being discussed comes via a report from Reuters:
Top Senate Democrats and Republicans on Tuesday said they were considering offering American companies a one-time tax break if they repatriate profits stashed abroad.
The senators anticipate the proposal would generate a windfall in revenue that would be used to fund federal transportation projects.
U.S. Senate Minority Leader Mitch McConnell told reporters in the Capitol that Republicans had discussed a corporate tax repatriation “holiday” idea and “it enjoys a good deal of support in our conference.”
In the past, Apple has made no secret that it does not favor the current corporate income tax rate. With current policy, Apple’s repatriated funds would be subject to the 35% corporate income tax meaning it could really only keep 65% of its earnings… Read more
Update: Live coverage of the Senate hearing on Apple’s offshore tax practices is above.
As things heat up in the row on alleged tax avoidance by Apple, Ireland has denied a claim made by the Senate Permanent Subcommittee on Investigations that it had agreed a special deal with the company to allow it to pay corporation tax of just 2% on its Irish earnings.
The denial was made to Yahoo! Finance reporter Conor Humphries:
According to the congressional report, Ireland had also agreed a special 2 percent rate for Apple’s Irish taxable profits instead of the normal 12.5 percent, but a spokesman for Ireland’s finance department, when asked how and why this had come about, said: “Ireland’s tax system is statute based, so there is no possibility of individual special tax rate deals for companies.”
This appears to flatly contradict a statement by the Senate subcommittee that accused Apple of … Read more
Movies section disappeared from Apple TV http://t.co/a3YwwnOd—
Jon Veal (@jonveal) December 27, 2012
Several 9to5Mac readers, most of which are located in the United Kingdom, reported that movies and TV shows have oddly disappeared from the Apple TV menu. A thread on Apple’s Support forums confirmed many users are now experiencing the issue.
While the problem originally appeared to only affect users located in the U.K., more reports on Twitter, as highlighted in the selection of tweets below, from New York, France, Ireland, and Australia further confirmed missing icons. One user on Apple support forums claimed Apple informed him the icons would be restored soon and that the stores continue to work in the U.S. and Luxembourg:
Last we heard, Apple was being threatened with closure of its Italian operations if it did not make necessary changes to its warranty policies following an investigation by the Autorità Garante della Concorrenza e del Mercato. The authorities had previously fined Apple $1.2 million, claiming the company failed to inform consumers about a two-year warranty mandatory by EU law. Now it appears Apple has officially taken its AppleCare Protection Plan products off the shelves in Italy with only online versions of the product still available to Italian customers.
setteB.IT shared the image above showing what is apparently an email from Apple Distribution International in Ireland to Apple resellers in Italy. Apple informed resellers that it would stop selling all AppleCare Protection Plans in Italian Apple Stores as well as through authorized resellers. From the email, it also appeared Apple will no longer offer AppleCare-related services over the phone in the country.
setteB.IT also noted Apple has updated the terms for AppleCare on its Italian website. Rather than a “1 year warranty”, the website now reads “AppleCare plans benefits are added to the 2 year warranty of the seller, required by Italian regulators to protect the consumers.”
A full translation of the email is below: