Apple/ireland tax deal

[unclebulgaria67]

http://news.sky.com/story/apple-ordered-to-pay-836413bn-in-back-taxes-10557945

 

Both Apple and Irish government are not happy that their tax deal is being undone by the EU, because it broke EU rules on state subsidies to business. Apparently the tax rate paid was less than 1%, when Ireland has a corporate tax rate of 12.5%.

 

I think it is about time the EU looked at these special tax deals that countries make with large international companies to ensure there is fair competion on tax rates. Why should big companies with sophisticated cross border operations end up paying less taxes than other companies, where they choose to site their head office for tax purposes. I suspect other businesses in Ireland would love to only pay about 1% tax.

 

Apple and the Irish government are appealing against the EU decision.

 

Nb. Re Brexit, if this happens, it is very unlikely EU single market tax rules will change or a UK government would choose not to apply the current EU rules that allows companies to transfer money around to minimise tax. The Tories support tax competition and support businessss taking decisions on transferring revenues cross borders to invest in other countries, while also helping minimise tax. This Tory government brought in new rules anyway to restrict how companies try to avoid tax by shifting profits outside the UK.

[king12345]

Put it this way: If Apple had to pay full corporate tax they would go somewhere else (monaco for example) = revenue for Ireland nil.

 

Ireland cracks a deal of 1% on a multibillion euro turnover = revenue for Ireland 10 million for every billion turnover.

 

Would you say no to a deal like this?

It's free money for the country!

 

Tax heavens run this system whereby you can negotiate your own corporate tax and these small countries are thriving.

We should adopt the same system once we get rid of EU for good

[unclebulgaria67]

Put it this way: If Apple had to pay full corporate tax they would go somewhere else (monaco for example) = revenue for Ireland nil.

 

Ireland cracks a deal of 1% on a multibillion euro turnover = revenue for Ireland 10 million for every billion turnover.

 

Would you say no to a deal like this?

It's free money for the country!

 

Tax heavens run this system whereby you can negotiate your own corporate tax and these small countries are thriving.

We should adopt the same system once we get rid of EU for good

 

Disagree about a race to the bottom on taxes. That would end up with zero corporate tax rates, businesses being given subsidies to set up offices in countries etc.

 

You would end up paying more taxes e.g VAT, Income tax, National Insurance.

 

Companies have to trade to make money. Consumers can boycott a companies products and buy something else. There is no reason a UK company could not produce a rival product to iphones, ipads. Various UK companies such as ARM designed the components in these anyway and i think Apple has many British product design staff.