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EU Businesses The Almighty Buck United Kingdom Apple

EU Finance Ministers Line Up Behind $21B Tax Ruling Against Apple (herald-dispatch.com) 302

An anonymous Slashdot reader quotes the Associated Press: Dutch Finance Minister Jeroen Dijsselbloem urged Apple Saturday to "get ready" to pay up, as he and counterparts from other EU nations lined up behind a finding that the technology giant owes billions of euros due to more than a decade of improperly low taxation. Apple's bill could reach 19 billion euros ($21 billion) with interest, and both the company and Ireland, Apple's European headquarters are appealing the European Commission ruling. But on the last day of an EU finance ministers' meeting focused on ways to harmonize tax rules for international companies, Dijsselbloem told reporters that these "have an obligation to pay taxes in a fair way."

"International tax loopholes are a thing of the past," he said. Apple will have to pay back taxes both in the United States and Europe, he added, "so get ready to do that." Philip Hammond, his British counterpart, said the EU was keen "to make sure that international corporations pay the right tax at the right place. That's the fair way to do it, and we are going to make sure it happens."

Austria, France, and Italy are reportedly also watching the case closely.
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EU Finance Ministers Line Up Behind $21B Tax Ruling Against Apple

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  • by GeekWithAKnife ( 2717871 ) on Sunday September 11, 2016 @09:42AM (#52865729)

    This is where push will come to shove.

    You can have whole divisions of lawyers covering each and every aspect of the fine print to the nth level but the bottom line is;

    Tax laws, breaks and reductions are not there to be professionally manipulated to the extent that you pay nothing.

    Due to loopholes, exploitation and poor oversight megacorporations have had an unfair advantage for decades.

    Apple execs will throw a hissy fit because they know they manipulated every legal loophole to pay less. "It's legal" they shout. The intent not to pay tax to any meaningful degree is fucking the rest of us over. The rest of us can decide to call BS and slap you with a fine to pony up what you owe.

    Welcome to the iTaxes you owed us and never pay ALL THOSE YEARS -they are magical.
    • Welcome to the iTaxes you owed us and never pay ALL THOSE YEARS -they are magical.

      The same PCI EIDE card cost $20 for PC or $100 for Mac "back in the day", as it were. Looks like the world is about to get its share of the Apple Tax.

      • by TheRaven64 ( 641858 ) on Sunday September 11, 2016 @10:36AM (#52865985) Journal

        The same PCI EIDE card cost $20 for PC or $100 for Mac "back in the day"

        Back in the day, Macs came with OpenFirmware and so required different ROMs on the PCI cards. This typically added to the cost (the FORTH code in OpenFirmware provided a complete interface, whereas the tiny bit of PC BIOS code did far less and so required a smaller ROM chip) and had a far smaller market to amortise the run over. Amusingly, given your argument, quite a few companies I know bought graphics cards from Apple, because they worked fine in any OpenFirmware system and Apple sold you precisely the same card as Sun, but at a quarter of the cost. For a few models, the hardware was the same, so you could get the PC version and reflash it with the OpenFirmware firmware, but that typically voided the warranty and didn't always work.

        • Back in the day, Macs came with OpenFirmware and so required different ROMs on the PCI cards.

          Yeah, but the real reason why the hardware was so very much more expensive wasn't simply the fact that it had an OF ROM. It was that it had an OF ROM, and the market was minuscule, so the handful of customers had to pay for all of the R&D. You paid a tax for specialness.

          Amusingly, given your argument, quite a few companies I know bought graphics cards from Apple, because they worked fine in any OpenFirmware system and Apple sold you precisely the same card as Sun, but at a quarter of the cost. For a few models, the hardware was the same, so you could get the PC version and reflash it with the OpenFirmware firmware, but that typically voided the warranty and didn't always work.

          Yeah, my argument wasn't that Apple was the most egregious example of overpricing, though. Sun was definitely worse, especially once they got to the PCI era. Then you got a fancy processor yes, but with a bunch of garbage PC components (

        • by Cederic ( 9623 )

          Look at Apple's net profit margins compared to pretty much everybody else in the same industries.

          Don't try and convince me they don't gouge their customers. Their customers seem content with it, which is their choice, but it's still very blatant.


    • Another thing I forgot to mention...

      When I pay tax I do so according to my tax code. Generally speaking people get a different code and pay taxes differently based on their age, their marital status, disability or other factors. Why is that important? because once most of us know our tax code and salary we pay tax accordingly.

      Here is what we do not do; look up all the tax codes in different countries and try to align ourselves in such a way that we can leverage different tax benefits under different cod
      • Ireland is defending Apple because the Irish government knows that allowing companies like Apple to pay a pitifully low level of tax is the only way to get large international companies to employ people there.

        The real effect is to undercut the attempts of other countries in the same economic block to collect reasonable taxes.

    • > Due to loopholes, exploitation and poor oversight megacorporations have had an unfair advantage for decades.

      Actually, it is worse then that. Decades? Try Centuries. Before corporations were invented in 1602 there were trusts. How do you think the Catholic Church bought land let alone people in the B.C. era??
      https://en.wikipedia.org/wiki/... [wikipedia.org]

      When US Corporations were declared a legal person in the 1800's and again in the 1900's ...

      https://en.wikipedia.org/wiki/... [wikipedia.org]
      http://www.npr.org/2014/07/28/... [npr.org] .. th

    • The intent not to pay tax to any meaningful degree is the same as the intent not to give money to an armed robber to any meaningful degree. Being a government does not excuse an entity from ethical behaviour.
    • and do the same to the rest of the corporations that been using sneaky underhanded methods to get out of paying taxes, both in the EU and USA,
  • by hyades1 ( 1149581 ) <hyades1@hotmail.com> on Sunday September 11, 2016 @10:10AM (#52865843)

    Brexit just might work out after all.

    Since the EU clearly believes corporations operating on its soil should actually pay taxes, an opportunity is raising its one-eyed head. Maybe the UK can set itself up with Jersey and the Isle of Man to become the Cayman Islands of the North.

    Worse weather. Better tax haven. Everybody wins!

    • And... how exactly would Britain be able to help multinationals dodge taxes on profits earned in EU countries?

    • Ooh. Apple Europe: Now Located on the Isle of Man.
    • Would only work for UK, not the EU.
    • by AmiMoJo ( 196126 )

      The EU would just stick tariffs on goods from the UK and on profits exported there. That's the whole point of this and of the new tax rules being drawn up - tax is paid where profit if made, not where the company has an office for tax purposes.

      • Actually, that is exactly what happens now, and is the entire cause of the "problem".

        Apple Ireland acquires an iphone for $x, then sells it to Apple France for $y, then the end user buys it for $z.

        $x is close to the cost of production, including expenses for design, etc in the US. $y is close to $z, multiplied by the number of units sold, it covers the cost of operating in France, with a slight profit margin.

        Since Apple beat them at their own game (they literally wrote the rules), now they want to change t

        • If Apple had any balls, they'd pull out of Europe, push a firmware update to brick any devices there that they can reach, and literally burn to the ground any assets that they are unable to smuggle out.

          Ah, the rage of the thwarted ideologue!

          Imagine how intimidated other multi-national trading blocs would be by such a performance! Thank goodness the countries comprising such organizations don't have weapons, armies and places where they make law. That might mean Apple could wind up with its assets froze

  • So Ireland made a deal with apple about them paying less taxes.
    Maybe this deal was against EU regulations, maybe it wasn't.
    Why should apple have to pay back taxes to the EU?
    If Ireland broke EU regulations, then Ireland is the one who should pay up.
    If I unknowingly buy a stolen car and the police find out, I lose the car.
    I don't suddenly have to pay an additional fee for having the car for 6 months.
    • They are not paying it back to EU. They are paying it back to Ireland.

      Eu don't collect business taxes, and I don't think any companies pays tax to EU.

    • by ledow ( 319597 )

      The EU are the ones harmed. Ireland chose to harm itself.

      It's more akin to Ireland choosing to sell products in its supermarket at zero profit, thus not paying EU tax due on it and putting the EU supermarket providers at an disadvantage when competing. It's anti-competitive, not theft.

      As such, Ireland aren't the ones directly harmed - they chose to do it voluntarily - but the EU sellers who had no idea this was happening and could not compete, were harmed and will be compensated.

      The Irish people, however,

      • I would say that if Ireland doesn't want to collect from apple that's their problem, as long as they still pay the EU.
        Then they can get sued for subsidizing apple, but that is a different issue in my eyes.
    • Re: (Score:2, Insightful)

      Comment removed based on user account deletion
      • by NoOneInParticular ( 221808 ) on Sunday September 11, 2016 @01:05PM (#52866703)
        Not sure what you're getting at with your final statement:

        If the US had been structured like the EU, we'd have had much more than one civil war.

        The US funds their 'Greek states' by funneling federal money over to them and reducing their sovereignity even further in the process. 'Schengen' is there in the US -- do you need a passport/visa to cross state lines? Who takes care of immigration in the US? And finally, the only civil war the US had was about leaving the union, a thing we're now going through with Brexit. No war in sight.

        I'm not really clear on what you're arguing for here. Should the EU be structured more like the US, reduce sovereignity, and start building up the military to force Great Britain in line? Or should the US get rid of the dollar so that every state can devalue their own currency when they're in trouble? Please explain what the right structure of the EU would be, one that the US can follow without civil wars.

      • It's what happens when you give up your sovereignty, ie via EU accession. The greedy authorities that you subjected yourself to get to decide things for you.

        The correct path, if you don't like this, is to leave the EU, as Britain has chosen to do.

        Not this bullshit again. Tell me, how did we give up our sovereignty if were were and are free to leave at any time? Here's an answer: we didn't. This has to be one of the absolute stupidest ideas of the entire issue that "sovereignty" means you can do what you wan

    • If I unknowingly buy a stolen car and the police find out, I lose the car. I don't suddenly have to pay an additional fee for having the car for 6 months.

      Different countries, different laws. If you unknowingly buy stolen goods in the Netherlands, you get to keep them.

    • by mark-t ( 151149 )

      If Ireland broke EU regulations, then Ireland is the one who should pay up.

      I remember one time when I got my year's income tax records from my employer and was filing my taxes, and using the amounts that they gave me, I was eligible for a substantial refund. I submitted this when I filed my return and received said refund. About 2 months later, however, I received a notification that there had been an error, and although I was not being charged any interest for the intervening time, I still had to pay

      • Completely different.
        Your company is not the one who determines how much tax you are supposed to pay.
        The Irish government is the one who determines how much tax apple should pay.
        If they misinform apple, then that is their fault, not apples.
        If the EU disagrees with Ireland, then they should demand the money from Ireland, not apple.
        Whether or not Ireland tries to get the money form apple should be up to them.
        • by mark-t ( 151149 )

          The Irish government is the one who determines how much tax apple should pay.

          No... it is the Irish government that is supposed to tell Apple how much to pay. The amount is determined by the EU. My company is supposed to tell me how much tax I am supposed to pay, if they get it wrong, I still owe the amount that I'm supposed to pay.

  • by ooloorie ( 4394035 ) on Sunday September 11, 2016 @10:45AM (#52866041)

    Corporate taxes in the US are too high; that's why these profits have been kept offshore for so long. Most Republicans and Democrats, including Obama, recognize that.

    The major political candidate who says she wants to raise corporate taxes is... Hillary. Although, to be fair to Hillary, she is probably lying.

  • I would imagine the Brexit supporters are loving this.

  • The money will be a nice little blip in the various countries' economies. But it is not the important thing. The key problem that I have long had with these crazy tax situations is that if a UK version of say facebook, uber, snapchat, etc were to be born, it immediately will have to compete against a company that doesn't pay taxes. This lesser tax money has many benefits, the shareholders are going to be more attracted to the non-tax paying company, they have more money for acquisitions and R&D, and the

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