A few surprising facts about Apple’s taxes in Ireland and the ruling to repay $14.5 billion US plus interest after the European Commission said Ireland illegally slashed the phone maker’s tax bill between 2003 and 2014.
According to Bloomberg News the ruling came on sweetheart deals cut by countries on major corporations to keep operations in their country and allows the company, in this case Apple, to move their profits and costs to wherever they are taxed most advantageously.
Now catch the tax rate the Commission claims Apple paid, “an effective corporate tax rate of one per cent on its European profits in 2003 down to 0.005 per cent in 2014.”
The U.S. government has come in on the side of Apple and the Irish government along with Apple are going to appeal the ruling.
Meanwhile, if you wonder if Apple could afford the fine should the ruling stick; no problem. Apple has a reported US $232 billion in cash, of which $214 billion is outside the U.S.
And other companies possibly facing the same fate in other European Union Countries: Starbucks and Fiat Chrysler in the Netherlands and Luxembourg and investigations are ongoing against Amazon, McDonald’s and Google parent Alphabet.