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Apple's Irish friends

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Re: Apple's Irish friends

Postby diy » Fri Sep 02, 2016 8:37 am

Yes its 2003 - 2014, but it was the % paid on the more recent returns - last few years, which triggered the complaint and the investigation.

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Re: Apple's Irish friends

Postby atticus » Fri Sep 02, 2016 9:16 am

Larger amounts of tax are generally paid on larger amounts of profit.
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Re: Apple's Irish friends

Postby diy » Fri Sep 02, 2016 9:33 am

The more I read about this, the more I see this as an EU land grab on the anticipation that Apple was doing a deal with the US to repatriate the profits. I'm not defending any creative tax deals.. just merely answering the question:

Last, someone needs to do the maths. Can the employment and other benefits brought to Ireland over the years of the policy really dd up to the sums foregone?


My conclusion was the jobs, taxes and supporting functions created about $1 - 1.5Bn over 10 years, which would have otherwise not been in cork / dublin. Further if you look at the expectation it sets with other global floating tech giants. that figure is probably another 5-10 X
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Re: Apple's Irish friends

Postby atticus » Fri Sep 02, 2016 1:07 pm

Isn't this about the EU rules on state aid - generous tax arrangements being as much a form of assistance as monetary subsidies? The effect of state aid is an unlevel playing field.

Off course all countries use tax incentives in one form or another. The UK regularly provides a favourable tax regime for film makers, for example. Why? So that films are made in the UK, and not somewhere else.
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Re: Apple's Irish friends

Postby diy » Fri Sep 02, 2016 4:22 pm

There is more than a few articles to suggest a bidding war between states emerged with Apple dangling the landing of profits to the lowest bidder (or something not a million miles off). it appears that the US tax authorities had a hand in the complaint, which triggered the review
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Re: Apple's Irish friends

Postby Millbrook2 » Mon Sep 05, 2016 9:48 pm

As I understand it the EU position is not about harmonisation of taxes - which it cannot do for corporation tax- but a supposed breach of state aid rules. Some would claim that it has gone after Apple this way because it is against Irelands low level of Corporation tax.

In other words in the same way the US found a way to use the tax laws to convict that gangster because it could not get the evidence for a criminal case the EU has used competition law because it cannot demand that a national government change it's tax rates.
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Re: Apple's Irish friends

Postby diy » Tue Sep 06, 2016 7:52 am

Ireland's defence could easily be that the same terms would be offered to other companies who met the same criteria, perhaps they might have had the wisdom to enshrine the terms in statute though. I can see the EU's point, Ireland required a bailout not too long ago and at the same time is undercutting its neighbours to bag corporate HQ's who would naturally reside in other countries. However, their entire industry is dependent on this model, as unlike the BVIs its not a particularly nice place to holiday.
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Re: Apple's Irish friends

Postby atticus » Tue Sep 06, 2016 11:15 am

That does not appear to answer the question of state aid. If anything, it admits it.
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Re: Apple's Irish friends

Postby atticus » Tue Sep 06, 2016 12:03 pm

PS Ireland is a wonderful holiday destination. You might try it.
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Re: Apple's Irish friends

Postby dls » Wed Sep 07, 2016 8:35 am

Trying it next week. We are in Dublin for a couple of days. First day is business, but suggestions welcome for after that.
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