Tax November 11

AAPL: 116.11

Stock Chart

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 …  expand full story

Tax October 7

AAPL: 110.78

Stock Chart

Lobbying group Citizens for Tax Justice has called out Apple, Google and Microsoft and others for what it described as “accounting tricks” in which companies “pretend” to be based overseas for tax purposes. The claims were made in a report entitled Offshore Shell Games 2015.

Many multinational corporations use accounting tricks to pretend for tax purposes that a substantial portion of their profits are generated in offshore tax havens, countries with minimal or no taxes where a company’s presence may be as little as a mailbox. Multinational corporations’ use of tax havens allows them to avoid an estimated $90 billion in federal income taxes each year.

The group said that Apple has paid “a miniscule 2.3 percent tax rate on its offshore profits,” many of which have been entered into Apple’s books in Ireland. CTJ says that if Apple paid U.S. tax rates on those profits, it would owe $59.2 billion.

The controversy over the legitimacy of Apple’s overseas tax arrangements is not, of course, anything new …  expand full story

Tax December 3, 2014

Covent Garden, London – one of the largest Apple Stores in the world

Covent Garden, London – one of the largest Apple Stores in the world

New corporate tax measures aimed at preventing multinational companies making profits in the UK and then shifting them overseas where they incur lower taxes could potentially impact a number of tech companies, including Apple, Google and Amazon.

The British government announced a new 25% tax on profits generated in the UK and then “artificially shifted” overseas, reports the BBC …  expand full story


Tax June 11, 2014

Tax March 23, 2014

Members of the UK government are seeking to close a tax loophole that currently allows online music, app, and book downloads to avoid the country’s 20% “value added tax” in favor of much lower international tax rates, reports The Guardian. If the push is successful, iTunes customers in the UK will instead be taxed at the appropriate rate for their own country.

However, the new law won’t go into effect until January 1, 2015, so there’s still time for things to change. Supporters of the change say that it will lead to more fair competition among foreign and domestic companies, since UK-based companies are currently at a major disadvantage due to the higher tax rate.

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Tax November 13, 2013

Image of CFO Oppenheimer and CEO Cook

Image of CFO Oppenheimer and CEO Cook

According to a report from Reuters, Apple is apparently under investigation in Italy related to unpaid taxes on more than $1.34 billion. The report quotes a “a judicial source with direct knowledge of the matter” and noted that the investigation is currently underway with authorities in Milan.

Milan prosecutors say Apple failed to declare to Italian tax authorities 206 million euros in 2010 and 853 million euros in 2011, one of the sources said, confirming a report by Italian magazine L’Espresso.

“The Apple investigation is under way,” the judicial source said on Wednesday, without giving details.

Reuters notes that Italian authorities in June handed down prison sentences and hundreds of million in fines for unpaid taxes to fashion designers Domenico Dolce and Stefano Gabbana.

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