After the decision of the European Court that Apple must pay Ireland 2003 billion euros for tax cuts between 2014 and 13, it announced Tim Cook na Apple.com open letter. Director Applu criticizes the European Court's decision in the letter on the grounds that it will have a broad impact on European business. The accusations, which Apple received, states that he received a special offer on Irish taxes. Instead of Ireland's standard 12,5% corporate tax, he is said to have paid just 2%.
Cook he wrote that he is Apple forced to pay taxes to a government that says they Apple He does not owe any more money. Director Applu framed the European Commission's decision as interfering in Irish affairs and replacing the Irish government with its own. Ireland and the United States appear to have agreed that the company's earnings should be taxed in the country where they are valued. That country is the United States, since most of the company's research and development Apple is located in California.
Apple pays all taxes they legally owe. Cook He said that Apple it is the largest tax payer in Ireland, the United States and even the world. Apple thanks to youancThe factory in Ireland, which he opened almost 40 years ago and employed 60 workers, has already created 1,5 million jobs across Europe.
“After targeting Apple "This decision will have the biggest impact on investment and job creation in Europe. Thanks to the European Commission's theory, now suddenly every company in Ireland and across Europe risks being subject to taxes thanks to laws that never existed," he said. Tim Cook.
Tim Cook ends the letter by confirming that Apple still trying to bring about international tax reform. He notes that all changes will only lead to the better and will occur legally. With this remark, he alludes to the European decision, which he characterized as a change to the law, which has a retroactive effect.
Source: 9to5mac
The main thing is that it is interpreted everywhere as tax fraud, even though everything was legally arranged. I would still take the EU to court for defamation.
Hmm, that's nice, in Tim's opinion Cookand, then no foreign companies that sell in Europe should actually pay taxes in Europe...
"Ireland and the United States appear to have agreed that a company's earnings should be taxed in the country where they are assessed. This country is the United States, as most of the company's research and development Apple it is situated precisely in California.”
According to Tim Cookand so it is not important where the money is earned, but where the development and research is carried out.
And it seems that Ireland has agreed with him on this, for a smaller fee of 2% of the profit… A really nice deal…
Just to be sure, I don't think so Apple did anything illegal... But that's a bigger problem, because the same thing is done by xy successful companies, including ours, i.e. SK/CZ...
Tax optimization... :)
Apple he took advantage of the tax incentive he was lured into in Ireland. Our governments do the same - come do business with us, we'll waive your taxes. The decision of the EC is really absurd.
Ireland wanted them there so made them an offer which they accepted. And according to the given contract, those taxes apply. That's what contracts are for, after all. If the contract with the state no longer applies, then what? If another community comes after the EU, will it negate previous decisions? It's a big mess!
and I…
exactly APPLE society is also not enlightened, a smaller bribe and we bend the law so that it is legal.
that open letter is ridiculous aggression!
just read the newspaper, similar crap happens every day even in our CR.... Multinational companies and government employees are ripping off taxpayers.
Gentlemen, don't idealize Apple and don't look at the EU or, to be precise, the EC, because it is a decision of the European Commission as a creepy bugger. Ireland has negotiated corporate taxes of 12% with the EU and they apply to everyone, or should apply. Apple negotiated taxes of 2% under some mysterious conditions, which in itself is a violation of EU legislation and of course both parties knew it. However, this was agreed at a time when there was no financial crisis and every incentive was good. Then came the Irish financial crisis and the money was already good for them, even though it was far less than they should have received. And now toonesomeone unraveled those thousand-page contracts and discovered that Apple not only does he pay less than he has to according to EU legislation, but in some cases he even paid taxes of 0,005% to max 1%. So no illegally agreed 2%. So that's the first thing.
Secondly, EU legislation says that the entity should tax its profits in the country where they are generated. But Apple due to the fact that this profit was artificially transferred to Ireland, it practically did not generate profit in these countries and skilfully reduced it in Ireland. So, for example, in 2011 it was like this: The Commission found that in 2011 the company reported Apple Sales International made a profit of $22 billion, but based on the tax ruling, only about €50 million of the profit was deemed taxable in Ireland, while €15,95 billion remained untaxed. So what to say.
Thirdly, it is important to realize that even if any official at the FU, and it doesn't matter that this was at the level of the government (these people are no longer in the government) agreed on some advantageous taxation and this advantage would violate the applicable legislation, it is simply this agreement is void by law. And again Apple he knows that very well. He just used the loopholes and got away with it for a long time. But now the cage just fell and watch out for one thing. Apple he receives no fine and no sanctions. He is simply supposed to deliver what is legislatively correct, just as the FÚ can deliver profits to you here. The funny thing about it all is the fact that they have to pay those taxes to Ireland, who created it all :)
And finally, the whole thing has an even deeper meaning in that it is, of course, a precedent that will affect companies like Google in the same way, Facebook, Microsoft etc. and considering that all these companies are mostly based in Ireland (where else, right? :D ) so Ireland may have a pretty big problem. And that is why of course it is protesting very loudly. And the second thing is that these illegal tax breaks for these companies are simply ending, because now it is known how things are and specifically Apple Instead of almost zero tax, he will suddenly have to pay 12%. And that's only in Ireland, and of course, his financial flows will start to be monitored in individual EU countries, where taxes are even significantly higher. And he doesn't like that. ProThat's the big scream.
Now I came across another interesting opinion...
Anyone who can read between the lines can clearly see that a trade war between the EU and the US has basically broken out. The TTIP agreement is in ruins because of Europe. Immediately, VW receives a brutal sanction of many billions of USD for the Dieselgate affair, despite the fact that the US authorities knew about the violations of the min regulations. two years in advance. They did nothing until after the fiasco with TTIP they started to act. Well, now the EU is striking back and wants these billions back through Apple.
because of these comments, I tried to refresh my login data after a long time so that I could write what azifaral already wrote :)
@pezkast: The fact that the TTIP agreement is going down the drain in its current form is only positive news. The US is demanding far more in the agreement than it is giving, and Germany and Franceancie, as the 2 most powerful EU states, they are very well aware of this and therefore they are avoiding it. Small states like us probably wouldn't care under what conditions the contract would be negotiated, or rather our "genius officials" certainly would, just so they can pretend that they have negotiated something with the USA. And whether it is advantageous or not.... It is only right that VW gets a band-aid. He cheated and they caught him with his pants down. Just like right now Apple. And that the EU would now strike back ... the investigation Apple and companies like him have been going on for almost 3 years, so it started way before there was any Dieselgate affair. It's just that it takes a few Fridays to wade through thousands of pages of skillfully written contracts.
Azifaral: thanks for some enlightenment. I just wonder what awaits Ireland for such a demonstrable fraud. From the side AppI wouldn't call it a scam, even though they are pissed off enough like any financier.
I have a feeling that we Apple in the EU can be eaten up a bit by raising prices.
Azifaral described it in more detail... And he did not forget to add that, of course, Apple is the first swallow in this... Or more precisely, the Hawk, caught in the net... :) It also applies to other (and not only) "IT giants"... And I didn't want to write a bribe, as the pezkast called it, so that someone might accidentally he didn't make a mistake... :) But it's simple and useful for both parties, there is a so-called "Double Irish" (if you're interested and don't know what it is, google it), and then you pay about as much as you want to pay and that too only in Ireland... :) And for Ireland, the 2% would probably be super useful, or even less, if it were a profit from business from the whole EU... :)