Ondrej Holzman The European Union has published its first findings in an investigation into Apple's tax payments in Ireland, and the result is clear: according to the European Commission, Ireland provided illegal state aid to the Californian company, thanks to which Apple saved tens of billions of dollars.
European Competition Commissioner Joaquin Almunia told the Dublin government in a June letter published on Tuesday that the tax deals between Ireland and Apple between 1991 and 2007 appeared to him to be illegal state aid in breach of EU law and could therefore be US company required to pay back taxes and Ireland fined.
[do action=”citation”]The beneficial agreements were supposed to save Apple up to tens of billions of dollars in taxes.[/do]
"The Commission is of the opinion that, through these agreements, the Irish authorities have conferred an advantage on Apple," Almunia wrote in the June 11 letter. The Commission has come to the conclusion that the advantage provided by the Irish Government is of a purely selective nature and at the moment the Commission has no indications that these are legal practices, which could be the use of state aid to solve problems in the own economy or to support culture or preservation of cultural heritage.
Favorable agreements were supposed to save Apple up to tens of billions of dollars in taxes. The Irish government and Apple, headed by CFO Luca Maestri, deny any violation of the law, and neither party has yet commented on the first findings of the European authorities.
Corporate income tax in Ireland is 12,5 percent, but Apple managed to reduce it to just two percent. This is thanks to the smart transfer of overseas revenues through its subsidiaries. Ireland's flexible approach to tax matters attracts many companies to the country, but other European countries accuse Ireland of exploiting and profiting from the fact that entities registered in Ireland do not actually have any nationality (more on this issue <a href="https://cdn.shopify.com/s/files/1/1932/8043/files/200721_ODSTOUPENI_BEZ_UDANI_DUVODU__EN.pdf?v=1595428404" data-gt-href-en="https://en.notsofunnyany.com/">here</a>).
The fact that Apple saved significantly on taxes by operating in Ireland is clear, however, it is now up to the European Commission to prove that Apple was the only one to negotiate such terms with the Irish government. If this were indeed the case, Apple would face huge fines. The Brussels authorities have relatively effective tools and could punish up to 10 years retroactively. The European Commission can demand a fine of up to ten percent of turnover, which would mean units up to tens of billions of euros. The penalty for Ireland could increase to one billion euros.
The key is the agreement concluded in 1991. At that time, after eleven years of operation in the country, Apple agreed on more favorable terms with the Irish authorities after a change in the laws. While the changes may have been within the law, if they gave Apple special advantages, they could be considered illegal. The agreement from 1991 was valid until 2007, when both sides concluded new agreements.
From 1991-1998, Apple went under, then grew (rather got back on its feet) with iPod/iTunes and music, and only started doing well after the iPhone, which is January 2007. It looks like: “Apple has billions today and that's why we (the EU) today bankrupt him even for the years when he deserved the support, because he was miserable" - So either a tax for success or the return of the loan. If the EU takes the tax advantage as a loan, IMHO it will be a precedent for other companies that, among other things, have become successful thanks to some kind of state advantage - Beware, the EU will rip you off tomorrow!
Whenever a company grows "disproportionately" and gains influence and a monopoly position, governments have to spank them so that they know that they are the ones who rule. Well, the financial bonus comes in handy too.
Of course, it is against EU laws (but shouldn't it?) for the government to agree with the entity that it will not have to pay taxes (or 12.5% -> 2%, the 12.5% is already very small compared to other states). Of course, some company does this. Of course, if Apple were poor, like a church cape, the EU would be upset about it. Of course, if there weren't "remarkable" competition eager to beat Apple through the fingers, no one would bother. Like us, the Irove are masters of fables and pranks, so in reality, I don't think it poses any threat to Apple, because they can easily obfuscate it.
after all, the whole EU is a socialist piece of shit that rips off the successful and fills it with slackers and free-suckers (Greece) and supports the mutlty cults of slackers who do nothing here but roar and multiply and roar how we discriminate against them. And we pay for it with our taxes. Hell, he has to get those thousand salaries (€5-7t salary of an EU official) somewhere. Then let's not be surprised that all prosperous companies will flee to Asia.
Tens of billions of dollars in taxes? And only in savings? Isn't that some kind of resignation? How much did they have as an assessment basis? Bambiliard? Hello
Look, here she is an expert on economics and taxes