A story dropped this week and is being pushed hard. It's claimed that instead of paying 12.5% corporate tax, Apple, which has bases in Ireland, is paying just 0.005% tax. The European Commission has ruled that Apple must now pay €13bn to the Irish government.
However, according to the Irish finance minister Michael Noonan, Apple paid all VAT due in Ireland and the full 12.5% in Corporation Tax that was due. He claims the EC calculated their number by assuming that all VAT, manufacturing costs and intellectual property of Apple products sold throughout the EU should be paid in Ireland, which is nonsense. Apple may have been dodging these taxes, but they were not Ireland's to collect. The phones are manufactured mostly in China, the IP is based in California and VAT on a phone bought in France for example is paid in France.
Speaking on the country's evening news, Noonan said firmly This is a very clear shot across the EC's bows.
However the problem here is this: Ireland are still in massive debt from their bailout and the country has a massive housing shortage which is causing a homelessness crisis in the capital of Dublin. The €13bn would go a long way to helping them get out of it. However, if they were to take it, their reputation among multinational companies would be shot to bits and they would struggle to pull in more investment.
So either way they're fucked? Hopefully they get the outcome that leads to the EU being more damaged.
Jeremiah Clark
Soon hopefully. EU should be worried about losing them, because they're the only English speaking country they have left.
You'd think the EU would be doing everything they could to keep the Irish onside, but holding back and showing restraint isn't exactly their strong point. I think their aim here may be to topple the Irish government, even though Fine Gael is Peter Sutherland's party. It's a confusing one to untangle.
Ayden Williams
Oy Begorrah, muh €13Billion! Tink of der welfare we culds spend dit om shamus
David Sanders
Ok. So what should I be paying attention to?
James Martinez
muh dikk
Lucas Perry
Not for a long time i'd say. Brainwashed in loving big government.
Jaxson Fisher
Ireland and Apple both intend to appeal, but the Irish government need to win a vote in parliament on the issue before they can begin appealing. It could potentially lead to a general election, depending on how far the independents are willing to take the issue.
The best outcome would be for the Irish parliament to vote in favour of the appeal, for themselves and Apple to win and the EC's ability to interfere in country's financial affairs be seriously impaired.
Apple's shady tax loopholes need to be shut down, but most of these aren't even the responsibility of the Irish to regulate, so the interference of the EU in Irish affairs is totally unwarranted.
Ethan Peterson
Tough shite, Ireland's going to be net contributors from next year, the EU just wants a little bit of that 13bn tax revenue…
WTF? I thought Ireland was full of half-built housing estates off the Cork/Dublin corridor, built before the Celtic Tiger nonsense bit the dust.
Aiden Rodriguez
Oh me oh my! Dis be quite da tink!
In dis ther hand, I be able to buy the genius for me mornin hangover! But run out dis here beer!
In dis here oder hand, I be set up lik I already be!
Isaiah Diaz
Yea but there's no infrastructure around those idle housing estates.
Juan Edwards
methinks the EU doth protest too much!
Brody Phillips
Yeah, housing estates with no roads to them, no roofs and often no connection to running water or sewage systems.
This whole story is trying to make Apple the victim when they are anything but. Apple engages in slave labor in China when they could manufacture here in America. When Jobs ran NEXT they had an "automated" plant in California to churn out computers. The major systems on the Iphone would not be possible without the R&D that the American taxpayer paid for. Remember the lie that R&D spending boosts tax revenues and economics growth? Not if Apple is allowed to horde the money in various offshore tax schemes.
Asher Morgan
Apple aren't the victim here, and they are dodging tax, but blaming Ireland for this is a red herring. The European Commission should have no jurisdiction there in any case, and if this is upheld, it sets a precedent where they can interfere in a country's taxation systems.
I know racial demographics are extremely important, but Holla Forums sometimes has too narrow a focus and only pays attention to that aspect of EU plans. The loss of economic autonomy is de facto the loss of sovereignty. The EU has essentially declared that Ireland is incapable of or not authorised to handle its own tax affairs, which should really make people sit up and take notice.
There are eastern European countries trying to follow Ireland's model of low corporation tax to attract foreign direct investment. If this decision is upheld, those plans are up in smoke and Germany and France can railroad in their minimum corporate tax rate they've sought for years, ie no other country in Europe is allowed to compete with us economically. This would affect Orban's Hungary, the nationalist party in Austria should they win, Law & Justice in Poland, etc.
It's a big deal, and it's important to be informed about it.
Kayden Wright
Not quite. If the EU is seen to be actively attacking Ireland's corporate tax rate I think public attitudes there would shift so fast your head would spin. Everyone there understands that tax rate is the duct tape holding their economy together.
Also, they do more trade with the UK than the rest of the EU together I believe. They would likely move to align themselves with a post-Brexit UK if they could get public support, which wouldn't be hard if it was obvious the corporation tax rate was under threat.
This is why the EU have put this forward in such a way as to drive a wedge between the Irish government and Irish people. Their narrative is that they're riding in to save the by vanquishing the big bad corporation and heavily implying (untruely) that Ireland's government was helping Apple avoid tax. That will not go down well in a country that has been under strict austerity measures for around 7 or 8 years. What happens next depends on how many Irish people see through the smoke and mirrors the EU is throwing up.
Hunter Watson
Bump for European Jewnion trickery
Xavier Rodriguez
As a Potato-human I would find it hilarious if THIS is what causes us to follow Britain's path and leave, after literally being told our stupid goy vote didn't matter and being forced to take it again. Hopefully we do Leave because of it.
Tyler Collins
Ireland is already on the road to being totally fucked this is just another bump in it. notice the leprechaun in lower left pic related
Charles Miller
Ireland is over 84% White Irish and 9% other whites. They're in the same danger as other countries of being overrun, but not any country-specific danger.
Like I said, in another comment
Holla Forums's focus is sometimes too narrow and we only pay attention to race. Issues like this are important too.
Liam Cruz
UPDATES Apple CEO Tim Cook has spoken out on the ruling Irish Independent archive.is/RFn8D
Controversial Irish businessman Micheal O'Leary of Ryanair has criticised the EU ruling O'Leary campaigned for Remain in the UK for anyone interested its own tax decisions. Irish Times archive.is/o2yuP
