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Anorak | Apple’s Fine From The EU Might Be As Much As …..Umm, 200 Million?

Apple’s Fine From The EU Might Be As Much As …..Umm, 200 Million?

by | 1st, October 2014

The European Commission has now released its document about why and how it thinks that Apple has been playing hooky with the Irish tax system. And it’s a real joy for connoiseurs of the intricacies of bureaucracy and taxation. Essentially, what the EU is saying is that the profits Apple made actually in Ireland were not properly taxed. And that, if they can prove that, then Apple must pay over to Ireland the tax that they should have paid.

The thing is, even if the EU manages to prove all of this then the likely amount that Apple will pay is $200 million or so. Yes, that’s all :

Apple set aside about $12 billion for U.S. federal and state income taxes in fiscal 2013, on sales of $62.7 billion in the Americas, according to a filing with the U.S. Securities and Exchange Commission. The company, which doesn’t break down revenue by country, set aside just $1.1 billion for foreign income taxes over the same period, on sales outside the Americas of about $88 billion. It reported foreign pretax earnings of $30.5 billion that fiscal year.

Apple could be asked to pay up to $200 million in back taxes, said Heather Self, a tax partner at Pinsent Masons LLP in London. She said the company could also agree to pay a smaller amount to settle—or pay nothing if Ireland offers a robust defense.

And another estimation :

Seamus Coffey, an economics lecturer at University College Cork, who has examined Apple’s Irish tax affairs, said: “The EC can

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Posted: 1st, October 2014 | In: Money Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink