Apple's $42 billion tax loophole closed in Ireland

[Judi Lynn]

Source: Reuters

Apple's $42 billion tax loophole closed in Ireland
Oct 16, 2013 9:20 AM (10 hours ago)

But an even bigger loophole remains open.


Ireland said on Tuesday it planned to shut down a much-criticised tax arrangement used by Apple to shelter over $40 billion from taxation - but will leave open an even bigger loophole that means the computer giant is unlikely to pay any more tax.

A US Senate committee investigation revealed in May that Apple had cut billions from its tax bill by declaring companies registered in the Irish city of Cork as not tax resident in any country. Senator Carl Levin said the company had achieved the "holy grail of tax avoidance" with the structures.

Irish leaders protested angrily against the committee's characterisation of Ireland as a facilitator of tax avoidance.

Parliamentary hearings were subsequently held to review Ireland's tax rules amid concerns that damage to its reputation could jeopardise the foreign investment on which its economy relies heavily.


Read more: http://www.crn.com.au/News/360701,apples-42-billion-tax-loophole-closed-in-ireland.aspx

[tomm2thumbs]

1. closed, and yet open

'Roy-Chowdhury said Apple could continue its operations largely unchanged by nominating as its tax residence Bermuda or another jurisdiction that does not charge corporate income tax.'

[FreakinDJ]

2. Geez... it was so worth it to outsource millions of manufacturing jobs

so Apple could have their Free Trade Agreement

[onehandle]

3. Approved by the Obama Administration: SEC Clears Apple’s Tax Strategy

OCTOBER 7, 2013 - Four months after opening its review of Apple’s finances, the Securities and Exchange Commission has closed it, having found nothing untoward about the company’s handling of its overseas cash and related tax policies.

In a September letter to Apple, released late last week, the SEC said it had completed its review of the company’s fiscal 2012 annual report, and would take no action against it at this time. Evidently, there’s no need to, as the agency has found Apple’s disclosures to be sufficient, particularly now that it has agreed to provide investors with more information about its foreign cash, tax policies, and plans for reinvestment of foreign earnings.

The review’s conclusion follows a summer of tax scrutiny for Apple, kicked off by the Senate Permanent Subcommittee on Investigations claim that the company used the “Holy Grail of tax avoidance” to pay little or no corporate taxes on some $74 billion in profits over the past four years. Apple, of course, disputed that characterization, sending CEO Tim Cook to Washington to tell the subcommittee to its face that the company is a good corporate citizen.

“We pay all the taxes we owe. Every single dollar,” Cook said during a May hearing. “We not only comply with the laws, but we comply with the spirit of the laws. We don’t depend on tax gimmicks.”

Read more: http://allthingsd.com/20131007/sec-clears-apples-tax-strategy

[PoliticAverse]

7. Of course they depend on tax gimmicks, why do you think all that money is funneled through Ireland?

[onehandle]

8. It's up to our government to fix this on our end. And it's not just Apple.

Nothing will change until this second guilded age Congress is gone.

[Sgent]

10. The SEC

is interested in their accounting -- they don't take positions on taxes unless its grossly out of line with existing tax law, and its the Treasury department's job (or congress) to deal with tax loopholes.

[RussBLib]

4. the sooner we quit allowing corps to rob the Treasury the better off we'll be

...but the politicians are bought and paid for. I'm beginning to think that term limits might be the only thing that could pull us out of this spiral.

[CountAllVotes]

5. No pity for you stinking Apple

Greedy SOBs (so what else is new?).

for ANY of the parties involved!!!

[florida08]

6. corporate socialism

has been destructive since Reagan lowered the tax rate.

[BuddhaGirl]

9. "We don’t depend on tax gimmicks"

What horseshit

*iCheats*