Apple’s tax avoidance scheme remains as creative as their new iPhone

apple-logo_

This article was written by one of our passionate readers, Mrs Rachel Everly. The opinions expressed within reflect only the writer’s views and not The European Sting’s position on the issue.

The annual report released by Apple is hinting very strongly that they are continuing to earn good profits, which are unfortunately being funneled offshore to avoid U.S. taxes on a scale unmatched by any other company. Second, even after the EU declaring openly that Apple has been using its Irish subsidiary for illegal tax avoidance, Apple has not admitted to any wrongdoing.

Besides its disputed USD 29 billion in offshore cash, Apple has amassed up to USD 216 billion in funds on which it has hardly paid a 4% tax rate. This means that it has evaded up to USD 67 billion in U.S. taxes. The company is fighting tooth and nail in order to avoid paying any taxes to any government on its so-called Irish taxes.

However, the European Union has caught on to Apple and they are not going to let them go easy. Government authorities around the world are cracking down on big businesses for the taxes they have so successfully avoided paying. Right now European Union is hounding Apple for taxes into the amount of USD 14.5 billion. The European Union conducted an investigation into the Apple’s affairs and found that they had entered into agreements with the Ireland government through which they had received these illegal tax benefits.

What is the Apple Ireland tax controversy?

Apple in Ireland has tax arrangements in Ireland which have allowed them to pay an ultra-low tax rate of 4%. It was rightly commented that in percentage terms most small businesses like hot-dog vendors end up paying more. This is an issue that is being hotly debated in U.S for most of the profits that Apple earns are said to be earned by their Irish subsidiaries thus helping them evade tax in the U.S. The European Commission is now targeting this arrangement because they say Apple has distorted the competition and gain an unfair edge. They have alleged that such an act amounts to illegal state aid and is a breach of the EU’s unique restrictions on state support to companies.

What is the U.S’s stance of the case?

If Apple is forced to pay back money to the Ireland government that means tax money lost for the U.S. government. The U.S. government is already underfire for letting big corporations get away with what people are calling “day-light” robbery looking at the dismal tax percentages they pay compared to their profits.

Why would the U.S get less tax? Because they will treat this Irish tax as an expense which lowers their profit thus making even less available to be taxed in the U.S. Thus the U.S. is actually taking Apple’s side and has gone to say that the European commission is behaving like “supranational tax authority” and have threatened international tax reform agreements through inquiries. However, this mindset is very detrimental to progress because the EC has gone out its way to point out that a part of the USD 14.5 billion would be awarded to the United States rather than Ireland. The EC is not viewing this as political exercise rather it is going after Apple to set a precedent that all abuse of power by big corporations will eventually be brought under the limelight.

Why should the average “Joe” care?

This is something that should of huge interest to every person. Most individuals end up footing the bill for such corporations by paying higher percentages of tax. Secondly, many students will be entering the workforce and they should be aware of such issues for it will help them decide what route to take after graduation.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Join the Hive!

Featured Stings

Washington D.C., 27 January 2017. The British Prime Minister Teresa May and the US President Donald Trump held a joint press conference after their meeting at the White House. (Foto: UK Government work).

Brexiteer May gets lip-service from Trump and Turkish promises from Erdogan

Press conference by Olli Rehn, Vice President of the EC in charge of Economic and Monetary Affairs and the euro on the autumn economic forecast for 2012-2014 for Gross Domestic Product (GDP), inflation, employment and public finances. (EC Audiovisual Services).

Inflation not a problem for Europe

Sharon Bowles (ALDE, UK), chair of the Committee on Economic and Monetary Affairs of the European Parliament welcomes ECB’s Vice-President Vitor Constancio in the EU’s legislative, for the presentation of the ECB’s annual report. (European Parliament photographic library).

Who is to profit from the quasi announced ECB rate cut?

G20 Logo Turkey Antalya

Four things Turkey did for business in the G20

EU Heads of State and Government met at the European Council of 12 February 2015, in Brussels. From left to right: Francois Hollande, President of France, Angela Merkel, German Federal Chancellor, Alexis Tsipras, Greek Prime Minister. (Shoot location: Brussels – Belgium, Shoot date: 12/02/2015; European Council - Council of the European Union Audiovisual Services).

Deep chasm still divides Athens and Brussels; can Eurozone use the nuclear arm of liquidity against Greece?

ebs-2014-logo1

European Business Summit 2014: Sting Report, Day I

Group photo: Teima Onorio, Vice President of the Kiribati, Madelyn Antoncic, Vice President and Treasurer of the World Bank, Kristalina Georgieva, Member of the EC in charge of International Cooperation, Humanitarian Aid and Crisis Response, Mohamed Najib Boulif, Moroccan Minister Delegate to the Head of Government, in charge of General Affairs and Governance, Jim Yong Kim, President of the World Bank Group, Koriki Jojima, Japanese Minister for Finance, Christine Lagarde, Managing Director of the International Monetary Fund (IMF), Ilyas Moussa Dawaleh, Minister for Economy and Finance of Djibouti, in charge of Industry and Planning, Haruhiko Kuroda, President of the Asian Development Bank (ADB), Naoko Ishii, CEO and Chairperson of the Global Environment Facility (GEF), and Michael Anderson, Director General for Policy and Global Issues at the United Kingdom Department for International Development (DFID) (from left to right). World Bank, organized a special conference called "Dialogue of Sendai" on managing natural disaster risk. (EC Audiovisual Services, 10/10/2012).

IMF launches a new offensive against Germany

Michael Karnitschnig, Head of Cabinet of Johannes Hahn, Hansjörg Haber, Head of the Delegation of the EU to Turkey, Johannes Hahn, Commissioner for European Neighborhood Policy and Enlargement Negotiations, Federica Mogherini, High Representative for Foreign Affairs and Vice-President of the EC, Christos Stylianides, Member of the EC in charge of Humanitarian Aid and Crisis Management and Stefano Manservisi, Head of Cabinet of Federica Mogherini (seated, from left to right). Date: 24/01/2016,  Location: Ankara. © European Union, 2016 / Source: EC - Audiovisual Service   /   Photo: Necati Savaş.

The EU bows to Turkey in view of the talks for a political settlement in Syria

Inauguration of the European Central Bank's new premises on 18 March 2015 in Frankfurt am Main, Germany. Mario Draghi (in the middle) cuts the ribbon. (European Central Bank Audiovisual Services).

Mario Draghi didn’t do it but Kim Jong-un did

Eurozone Summit, 07/07/2015. Mark Rutte, Dutch Prime Minister, Angela Merkel, German Federal Chancellor, Jean-Claude Juncker President of the EU Commission and Mario Draghi, President of the European Central Bank (ECB) taking his sit (in the foreground, from left to right). (EC Audiovisual Services, Date: 07/07/2015, Location: Brussels - Council/Justus Lipsius).

How bad is the Eurozone economy? The ECB thinks too bad

Handshake between Donald Tusk, Herman van Rompuy and Federica Mogherini (from left to right) during the end of the August Council where Mr Tusk got the top EU job. (EC Audiovisual Services, 30/08/2014)

“Who do I call if I want to call Europe?” Finally a name and a number to answer Henry Kissinger’s question

International Monetary Fund Managing Director Christine Lagarde speaks at George Washington University in Washington, DC October 3, 2013. (IMF Staff Photograph/Stephen Jaffe).

Lagarde: Keep feeding the banks cut down wages and food subsidies

ANTALYA, TURKEY - NOVEMBER 15:  (Front row L-R) Chinese President Xi Jinping, Turkish President Recep Tayyip Erdogan, US President Barack Obama, Brazilian President Dilma Rousseff, Russian President Vladimir Putin, (2nd Row L-R) British Prime Minister David Cameron, Australian Prime Minister Malcolm Turnbull, German Chancellor Angela Merkel, Japanese Prime Minister Shinzo Abe, Indian Prime Minister Narendra Modi, Singapore's Prime Minister Lee Hsien Loong, (3rd row L-R) Guy Ryder, Director General of International Labour Organisation (ILO), UN Secretary-General Ban Ki-moon, World Bank President Jim Yong Kim, Angel Gurria (L), Secretary-General of Organization for Economic Co-operation and Development (OECD), Bank of England Governor and Financial Stability Board (FSB) Chairman Mark Carney pose for a family photo during the G20 Turkey Leaders Summit on November 15, 2015 in Antalya, Turkey. Berk Ozkan / Anadolu Agency

G20 LIVE: G20 Leaders’ Communiqué Antalya Summit, 15-16 November 2015

Catalunya Independence Flag

Catalan Pro-Independence vote: how many hits can Brussels sustain at the same time?

MVNO MWC 2016

MWC 2016 LIVE: Freemium MVNO model a success, claims FreedomPop head

José Manuel Barroso, President of the European Commission, went to Berlin, where he participated in the 17th Tourism Summit (Tourismusgipfel). In his speech, the President reminded of the mutually beneficial effects of tourism and European integration, and underlined in particular the importance of the four freedoms of the Single Market for a flourishing tourism sector. (EC Audiovisual Services).

Easier Schengen Visas for non-EU holiday makers: A crucial issue for south Eurozone countries

Photo of the EU Commissioner for Trade during the joint press conference by Jyrki Katainen, Vice-President of the EC, and Cecilia Malmström, Member of the EC, on the treatment of China in anti-dumping investigations, which took place last July.© European Union , 2016   /  Source: EC - Audiovisual Service   /   Photo: Jennifer Jacquemart

The EU seals CETA but plans to re-baptise TTIP after missing the 2016 deadline

Mr David CAMERON, UK Prime Minister.
Shoot location: Brussels - BELGIUM
Shoot date: 28/06/2016
Copyright: No commercial use. Credit 'The European Union'

EU revengefully shows no mercy to Cameron by demanding a fast and sloppy Brexit now

From left to right, EU Commissioner Jean Claude Juncker and European Council President Donald Tusk during the G20 Leaders Summit Antalya, Turkey

G20 LIVE: “This was not an attack against France, this was an attack against the universal human values!”, EU President Juncker cries out from G20 in Antalya Turkey

Photo from donaldJtrump.com, Donald Trump's official campaign website (2016)

Donald Trump’s victory is a great opening for global EU leadership on the sustainability agenda

HE Ambassador Yang Yanyi at the Chinese Fashion Night on 21 October 2015, taking place at Brussels Chinese Culture Center.

Opening Remarks by H.E. Ambassador Yang Yanyi, Head of the Chinese Mission to the EU at the Chinese Fashion Night

Participation of Olli Rehn, Vice-President of the European Commission in charge of Economic and Monetary Affairs and the Euro, in the EC/ECB joint conference on Financial Integration and Stability, (EC Audiovisual Services, 25/04/2013).

Light at the end of the Eurozone tunnel

José Manuel Barroso, President of the European Commission, participated in the "Jobs for Europe" conference with Martin Schulz, President of the European Parliament and Herman van Rompuy, President of the European Council, (from left to right). (EC Audiovisual Services).

Inegalitarian taxation on labour haunts Europe’s social model

Visit by Kristalina Georgieva, Member of the EC in charge of International Cooperation, Humanitarian Aid and Crisis Response to Jordan. (EC Audiovisual Services). A baby and a happy mother are basics on occasions like that.  God knows what happens to them next.

Dark spots on EU humanitarian aid spending

Job Vacancy Rates by country for the second quarter of 2013. Source: Eurostat.

Job vacancy data reveal better prospects for Britain, stagnation in Eurozone

From left to right: Olli Rehn, Vice President of the European Commission, Rimantas Sadzius, Lithuanian Minister for Finance, Michel Barnier, Member of the European Commission, in a joint Press conference after the Ecofin was concluded. Luxembourg 15/10/2013. (Council of the European Union, Photographic Library).

Eurozone slowly but surely builds its Banking Union

Angela Merkel, German Federal Chancellor (on the left) and Francois Hollande, President of France in the European Council, meeting of 22 May. (EC Audiovisual Services, 22/5/2013)

Paris agreed with Berlin over a loose and ineffective banking union

Press conference by Margrethe Vestager, Member of the EC, on Interim Report of the State aid Sector Inquiry on Capacity Mechanisms
Date: 13/04/2016. Location: Brussels – EC/Berlaymont. © European Union, 2016 / Source: EC – Audiovisual Service / Photo: Georges Boulougouris.

Vestager vs. Google: a fight to ensure a competitive innovation framework

Catherine Ashton, High Representative of the Union for Foreign Affairs and Security Policy and Vice-President of the EC, went to the capital of Lithuania Vilnius, where she participated in the informal meeting of EU Ministers for Foreign Affairs with Linas Antanas Linkevičius, Lithuanian Minister for Foreign Affairs. In the press conference after the meeting Ashton took her distances from the Lithuanian Minister as in the photograph. (EC Audiovisual Services, 07/09/2013).

Europe united in not supporting a US attack on Syria

5g

MWC 2016 LIVE: 5G to embrace unlicensed bands and Wi-Fi

From left to right. Vítor Constâncio, Vice-President of ECB, Mario Draghi, President of ECB, Christine Graeff, Director General Communications ECB. Draghi explained the Governing Council’s latest monetary policy decisions and answered questions from journalists at a press conference on 19 January 2017 in Frankfurt am Main. (ECB Audiovisual Services. Some rights reserved).

Draghi repels Trump’s threats, rejects Schauble’s dictums

EU - Switzerland border control

Switzerland to favour EU citizens in immigration quotas as the risk of a new referendum looms

Linnéa Engström

A Sting Exclusive: “Paris is the moment for climate justice”, Swedish MEP Linnéa Engström claims from Brussels

Joint press conference by Michel Barnier, Member of the European Commission (on the right), and Erkki Liikanen, Governorof the Bank of Finland following the publication of the report prepared by the High-level Expert Group on reforming the structure of the EU banking sector. (EC Audiovisual Services, 02/10/2012).

Eurozone banks to separate risky activities: Can they stay afloat?

European Parliament. Committee on Economic and Monetary Affairs (ECON). Hearing with Danièle Nouy, Candidate for the Chair of the ECB supervisory board (on the left), pictured here with Sharon Bowles (ALDE, UK), ECON Chair. (EP Audiovisual Services, 28/11/2013).

The EU banking union needs a third pillar guaranteeing deposits

IMG_6829

Roxane in Cambodia

Xi Jinping, President of the People's Republic of China, visited the European Commission. Jinping, in the foreground, on the left photographed here with Li Zhanshu, Member of the Political Bureau of the Central Committee of the Communist Party of China (CCCPC); Member of the Secretariat of the CCCPC; Head of the General Office of the CCCPC, on the right. (EC Audiovisual Services, Date: 31/03/2014 Location: Brussels - EC/Berlaymont).

A new global financial crisis develops fast; who denies it?

european-youth-forum-logo

European Youth Forum welcomes the European Commission’s proposed revision of the Union Code on Visas, however it does not go far enough

Press conference by Michel Barnier, Member of the European Commission, on the adoption of a follow-up Communication to the Green Paper on the Long-term financing of the European economy. (EC Audiovisual Services, 27/3/2014).

EU Commission: The banks are not obliged to finance the real economy

Peter Praet, Member of the Executive Board of the European Central Bank (ECB)
in the festivities to celebrate the enlargement of the euro area to include Lithuania (EC Audiovisual Services, 23/07/2014)

ECB to play down IMF’s alarms for deflation danger in the EU

Martin Schulz, President of the European Parliament (at the centre), Enda Kenny, Irish Prime Minister and President in office of the Council of the EU (on the right), and Eamon Gilmore, Irish Deputy Prime Minister and Minister for Foreign Affairs and Trade. They gathered for a discussion on the Multi-Annual Financial Framework (MFF) 2014-2020 and reached a political agreement together with the Commission President Manuel Barroso not pictured here. (EC Audiovisual Services, 27/06/2013).

Parliament: No consent to EU budget until €11.2 billion unpaid bills are settled

ETUC Youth Committee & European Youth Forum Conference at the European Economic and Social Committee: "Quality jobs creation for young people:
what, how and when?"
(European Sting, 25/06/2015)

Finally an answer to the hottest question of European youth today: How to make sure Juncker’s Investment Plan works for youth

Google logo

Google once more under EU crossfire from a possible record fine and new Right to be forgotten case

Gordon Ching AIESEC

AIESEC @ European Business Summit 2015: The power of an individual and how we can awaken Europe’s Youth

The GSMA represents the interests of mobile operators worldwide.

GSMA Mobile 360: Connecting Cities, Connecting Lives, Connecting Europe

UNFCC COP21 Paris 2015

COP21 Breaking News: Paris Pact on Water and Climate Change Adaptation Announced

iSting: Change Europe with your Writing

Federica Mogherini, High Representative of the Union for Foreign Affairs and Security Policy and Vice-President of the EC (on the left) went to Washington, where she met with the NATO Supreme Allied commander. The Vice-President then participated in the 4th Annual Symposium on the EU's Common Security and Defense Policy (CSDP). Mogherini then met with John Kerry, US Secretary of State (on the right). (EC Audiovisual Services, 29/04/2015, location: Washington - State Department).

EU’s core members are eyeing larger parts of arms trade and of world map

Janet Yellen, Chair of the Board of Governors of the Federal Reserve System, the central bank of the United States. (September 2014. US Governmnet work. No known copyright restrictions).

The Americans are preparing for the next financial crisis

Imaginary Journeys Into Eternal China

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s