Apple to Pay 318 Million Euros in Italy to Settle Corporate Tax Probe

[ptb42]

27.5% ??! No wonder companies (and individuals for that matter) are looking for legal ways to mitigate these charges.

27.5% is a bargain, compared to the US -- where the top rate is 38%, albeit for only a small bracket from 15M to 18.3M in profits. Over 18.3M in profits is taxed at 35%.

This is why Apple (and many other multinational companies) don't repatriate profits from other countries back to the US, where it could be used to grow the US economy.

 

[bent christian]

27.5% ??! No wonder companies (and individuals for that matter) are looking for legal ways to mitigate these charges.

What Apple did is not legal, hence the fines, back taxes, etc.

 

[RebornProphet]

Apple paid what it was owed. However, the Italian government decided to move the goal posts to get more money from Apple, the same way that other companies try their best to swindle money from Apple.

Can you imagine how many people they have working to do Apple's taxes. Big companies will always use the unfixed loop holes. If they are there, use them.

Don't be such a fanboy. "Swindle" money from Apple? Pay your damn taxes and stop using loopholes. Apple doesn't know you, doesn't care about you, you're a number to them, a stat.

Defending them means nothing to them. People need to quit defending tech companies like they're a family member. What's even more hilarious is that you pay them for a device for the "privilege" to do so.

 

[chown33]

...
Apple has yet to comment on the deal, but previously said it has paid all necessary taxes in countries that it operates. ...

If Apple doesn't pay all necessary taxes in the countries it operates, then it's not operating those countries effectively.


This should be "in countries where it operates", or "countries in which it operates", or if one likes stranded prepositions, "countries that it operates in".

 

[Mums]

What's the difference between the mafia and any other government?

There is no longer any difference between the US or UK government and a mafia. But the US used to have a legitimate government for the people. Then Jekyll Island and the Federal Reserve happened and now we are run by the likes of Rahm Emmanuel and mafiosos like him. Check out Eustace Mullins for more info on this.

 

[Gary03mw]

I've defended Apples tax practices in the past but I was mostly defending them in terms of their right to keep money overseas and not pay the repatriation tax to bring that money back to America. I'm an American citizen and I still believe that Apple is doing the right thing by not repatriating. I also believe that the 40% rate is harmful in numerous ways to American business, government, and citizens. Any American politician attacking Apple for this is utilizing the "total political crap."

With all that said, I'm aware that Apple is also being accused of not paying taxes in foreign countries on goods sold in those countries. Personally, I am pretty far removed from this issue, so I don't understand it nearly as well but if Apple is avoiding tax by claiming they sold those goods in Ireland then this needs to be resolved and I have no issue with those countries getting the tax that is rightfully owed to them. I would have a problem with it if Apple sold an iPhone in Florida and somehow managed to avoid paying the US taxes for that.

So basically US politicians need to get off Apple for not repatriating and they need to fix the broken US tax system. This isn't Apples failure, it's yours. Foreign countries, if Apple is being sly then go get them.

 

[MH01]

In other news, Italy is still an economic mess and now this well is dry. Stay tuned for their "investigation" into Google, then Uber, then anyone else who can help them subsidize their poor planning.

Would you pay a single cent if you were not liable?

do you even read the articles? Or just the headline and defend apple in every thread?

An innocent party, with lawyers like apple who can afford legal representation would not pay a cent if they did not have to. At least 318 million were not paid! This has nothing to do with a stupid theory around Italy's economy.

 

[Plutonius]

Buuuuut .... good guy Tim Cook said all of this was 'political crap' ?

The 'political crap' he was referring to is not bringing the overseas money back to the US. Nothing to do with the case in Italy.

 

[H2SO4]

So this may sound like Apple is admitting it did wrong, otherwise why pay anything at all. But my take on this, is that it is paying money to make a distraction go away. This is a company that does hundreds of billions of dollars of business around the world each year. Paying way less than 1% of revenue to make a major problem go away would be seen by many as simple the pragmatic thug to do, with no admission of guilt...

I don’t buy it. It may be on a larger scale but if the taxman came knocking at my door I wouldn’t even have to listen to the whole spiel about what the accusations actually were.
The prosecutor would get about halfway through his first sentence and I’d say 'I’m not sure what you’re after but here are all of my deposits and debits for the year along with dates/times and who/from the monies changed hands. Have a read and come back to me.’
Apple have trouble here because the sheer number of transactions makes this difficult and also because they have a lot to hide.

 

[Ironduke]

dirty filthy beggars!

pay your taxes

 

[sofila]

Apart from the usual racist comments only becoming helpful in targeting stupid users, I wouldn't under estimate this settling. Other tax artists will be examined, other governments will follow this path. I think something is going to change, it's only a matter of time. It will be very slow (obviously) given the big size of elements involved.

And if a corporation like Apple needs to keep high margins for its share holders, it will be welcome to sell an iPaid Air3 16gb base model in Europe for 900/1100€. I'll surely be the first in line, they're going to fly off the shelves

 

[AFEPPL]

There is no longer any difference between the US or UK government and a mafia. But the US used to have a legitimate government for the people. Then Jekyll Island and the Federal Reserve happened and now we are run by the likes of Rahm Emmanuel and mafiosos like him. Check out Eustace Mullins for more info on this.

I'm a 100% sure the last time i checked the UK had a government for the people, elected by the people..
I'd even go further, the US only gets to elect from the two people with the biggest lobbyist and most donations in the bank - so its not really even truly democratic when compared to the UK as you are effectively buying a win. This was started with FDR and the nexus of patronage and power that changed America forever

 

[nebo1ss]

I've defended Apples tax practices in the past but I was mostly defending them in terms of their right to keep money overseas and not pay the repatriation tax to bring that money back to America. I'm an American citizen and I still believe that Apple is doing the right thing by not repatriating. I also believe that the 40% rate is harmful in numerous ways to American business, government, and citizens. Any American politician attacking Apple for this is utilizing the "total political crap."

With all that said, I'm aware that Apple is also being accused of not paying taxes in foreign countries on goods sold in those countries. Personally, I am pretty far removed from this issue, so I don't understand it nearly as well but if Apple is avoiding tax by claiming they sold those goods in Ireland then this needs to be resolved and I have no issue with those countries getting the tax that is rightfully owed to them. I would have a problem with it if Apple sold an iPhone in Florida and somehow managed to avoid paying the US taxes for that.

So basically US politicians need to get off Apple for not repatriating and they need to fix the broken US tax system. This isn't Apples failure, it's yours. Foreign countries, if Apple is being sly then go get them.

Finally an American that understand that Apple has a serious problem in Europe by not paying taxes in countries where product is sold but diverting all the income to Ireland. Every country in Europe is going after them Italy is just the start and hopefully they get a few settlements. What should happen is they should have to both pay a fine and back taxes.

Have to say that Apple is not alone in this practice and they are not the only one that Governments are going after. Others doing the same thing and on the list are Starbucks, Google, Amazon.

 

[Fender2112]

I'm going to assume that most of the people who criticize Apple have never owned their own company (self employed doesn't count) or worked at the highest levels of management. As someone who does, I can tell you, no one likes to pay taxes, no one. All tax payers will do everything they can to legally reduce their tax liability. There is nothing wrong or unethical about this.

The government makes the rules, we play by them. That being said, big corporations are fortunate enough to afford attorneys and financial advisors to help them interpret the rules and minimize tax liability. The problem comes when governments disagree on how the attorneys interrupt the rules. Which is soon followed by law suits and legal investigations. Once that happens, the corporation has to decide if they want to fight the battle or make a settlement.

Losing in court doesn't necessarily mean you intentionally did anything illegal. It means the court did not agree with your interpretation. Making a settlement is not an admission of guilt. It usually means you are cutting your losses so you can put your resources to better use.

To all of the critics, ask yourself this: Why would a multi billion dollar company who operates world wide intentionally engage in illegal tax evasion? Apple already has a big target on their forehead. Why would they give the government a loaded gun?

 

[Fender2112]

Have to say that Apple is not alone in this practice and they are not the only one that Governments are going after. Others doing the same thing and on the list are Starbucks, Google, Amazon.

The fact that there are multiple corporations doing this is a pretty good indication that the world's governments need to overhaul their tax systems. Just because everyone is doing it doesn't mean they are right. But, neither does it mean they are wrong.

 

[miknos]

WOW. That's what I call a huge theft. I mean "taxes". 350 million US dollars for italian politicians to spend, I mean invest. Maybe Berlusconi will get better prostitutes during this EU crisis.

 

[ArtOfWarfare]

When you have agreed to pay you have made an admission of guilt that is why the charges were brought in the first place what you did was illegal. These corporate parasites do it all the time around the world and the chickens are finally coming home to roost as governments start looking into these supposedly legal methods of not paying taxes that everyone else has to.

I would disagree. Going to court is expensive, even if you end up winning. It's a lot easier to just settle to avoid going to court.

I would like to know more details about this, though... $318 M Euros is a lot of money... I feel like court couldn't cost even a 10th of that...

 

[Snoopy4]

I would disagree. Going to court is expensive, even if you end up winning. It's a lot easier to just settle to avoid going to court.

I would like to know more details about this, though... $318 M Euros is a lot of money... I feel like court couldn't cost even a 10th of that...

Court, overseas attorneys and all the travel involved with it, PR hits, the distraction of it all and what not...$318M Eruo is nothing. Apple will crap that out in ten minutes working on a pet project that never sees a store shelf.

 

[H2SO4]

To all of the critics, ask yourself this: Why would a multi billion dollar company who operates world wide intentionally engage in illegal tax evasion? Apple already has a big target on their forehead. Why would they give the government a loaded gun?

Yeah and why would someone in the public eye commit a crime too? It happens! They are greedy and think they have the power/knowledge/arrogance to get away with it.

If they were innocent it’s worth the spend to prove it. Good publicity is hard to buy. If their books were 100% straight it would be easy to prove.

Running a business has nothing to do with it. They are certainly sitting on the line between the the spirit of the law and the letter of the law, what we can’t prove, (yet), is whether that line has been blurred by their very clever tax dodging lawyers.

 

[Mums]

I'm a 100% sure the last time i checked the UK had a government for the people, elected by the people..
I'd even go further, the US only gets to elect from the two people with the biggest lobbyist and most donations in the bank - so its not really even truly democratic when compared to the UK as you are effectively buying a win. This was started with FDR and the nexus of patronage and power that changed America forever

It started with Teddy Roosevelt and Wilson was completely bought out. I'm a US and UK citizen (Canada as well). UK is a socialist country. Elect who you want you'll still get leftist feminazi MPs hellbent on turning the UK into a third world cesspit.

 

[zin]

It started with Teddy Roosevelt and Wilson was completely bought out. I'm a US and UK citizen (Canada as well). UK is a socialist country. Elect who you want you'll still get leftist feminazi MPs hellbent on turning the UK into a third world cesspit.

The UK is a socialist country? Yet more proof this word literally has zero meaning for many Americans.

 

[VulchR]

The 'political crap' he was referring to is not bringing the overseas money back to the US. Nothing to do with the case in Italy.

Really? You don't see the connection between avoiding fair taxes in the US and avoiding fair taxes in Europe? The Italy case certainly establishes Apple's MO. They might be facing other actions in the EU, but, hey, if you're OK with Europe claiming its share but not the US....

 

[verpeiler]

Very good.. pay your taxes, Apple.

 

[Mums]

The UK is a socialist country? Yet more proof this word literally has zero meaning for many Americans.

Americans? Here are some British references to enlighten your darkness:
http://www.spectator.co.uk/2013/08/britain-is-now-a-socialist-utopia/
http://www.theguardian.com/books/2014/aug/29/socialism-for-the-rich
https://ricochet.com/archives/britain-is-a-socialist-country/

 

[Plutonius]

Really? You don't see the connection between avoiding fair taxes in the US and avoiding fair taxes in Europe? The Italy case certainly establishes Apple's MO. They might be facing other actions in the EU, but, hey, if you're OK with Europe claiming its share but not the US....

Completely different scenarios. Keeping money overseas is 100% legal (like you taking deductions). The situation in Italy was 100% illegal with some high level Italian Apple managers trying to cheat on the taxes. If you read the article, you would see that the criminal investigation against these managers is ongoing. In southern Europe (Italy, Turkey, etc.), tax evasion is a national pastime and these managers probably thought they could get away with it.