9-29-2014
http://finance.yahoo.com/news/apple-under-investigation-over-illegal-085735184.html
Apple Under Investigation Over 'Illegal' Tax Agreement That Allegedly Saved It Billions
Apple could learn as soon as Monday whether it may be required to pay billions of dollars in back taxes because it sheltered its revenues in Ireland, according to the Financial Times and The Wall Street Journal. Apple has previously been accused of avoiding up to $9 billion a year in taxes because of the way it arranges its cash in international jurisdictions.
The company is being investigated by the European Commission, which recently has targeted American companies like Apple, Amazon, and Starbucks for using lax European regimes as tax shelters. The FT reports Apple allegedly struck a deal with the Irish government in which it got a lower tax rate in exchange for bringing 4,000 jobs to the country.
The FT reports that Apple pays only a 2% tax rate in Ireland because of allegedly "illegal" agreements there that have lasted two decades.
Apple CFO Luca Maestri was robust in his denial of the allegations.
'Its very important that people understand that there was no special deal that we cut with Ireland. We simply followed the laws in the country over the 35 years that we have been in Ireland.'
From Apple's point of view, the investigation is unfair because it seeks to retroactively undo years of tax payments that predate a law that changed only in 2010 and has not yet been adopted in Ireland.
Apple currently has $223 billion in assets on its balance sheet, the vast majority of which is in cash and marketable securities of various types. Apple has previously asked US authorities for a "tax holiday" that would let it repatriate more than $150 billion in holdings back to the US.
http://finance.yahoo.com/news/apple-under-investigation-over-illegal-085735184.html
Apple Under Investigation Over 'Illegal' Tax Agreement That Allegedly Saved It Billions
Apple could learn as soon as Monday whether it may be required to pay billions of dollars in back taxes because it sheltered its revenues in Ireland, according to the Financial Times and The Wall Street Journal. Apple has previously been accused of avoiding up to $9 billion a year in taxes because of the way it arranges its cash in international jurisdictions.
The company is being investigated by the European Commission, which recently has targeted American companies like Apple, Amazon, and Starbucks for using lax European regimes as tax shelters. The FT reports Apple allegedly struck a deal with the Irish government in which it got a lower tax rate in exchange for bringing 4,000 jobs to the country.
The FT reports that Apple pays only a 2% tax rate in Ireland because of allegedly "illegal" agreements there that have lasted two decades.
Apple CFO Luca Maestri was robust in his denial of the allegations.
'Its very important that people understand that there was no special deal that we cut with Ireland. We simply followed the laws in the country over the 35 years that we have been in Ireland.'
From Apple's point of view, the investigation is unfair because it seeks to retroactively undo years of tax payments that predate a law that changed only in 2010 and has not yet been adopted in Ireland.
Apple currently has $223 billion in assets on its balance sheet, the vast majority of which is in cash and marketable securities of various types. Apple has previously asked US authorities for a "tax holiday" that would let it repatriate more than $150 billion in holdings back to the US.
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