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Old 07-03-2014, 11:25 AM
Muintir Muintir is offline
 
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Default Apple Tax scam!

If you are a PAYE worker in Apple every cent is squeezed whilst they cheat us of millions.

ri, Mar 7, 2014, 09:11

First published: Fri, Mar 7, 2014, 01:00



Detailed figures have emerged to illustrate how Apple has managed to pay almost no corporation tax for years on billions of dollars of revenue earned in other countries, using unlimited Irish entities.

According to accounts obtained by The Irish Times for one of those unlimited companies, Apple Sales International (ASI), the consumer electronics giant cut its Irish tax bill by more than $850 million between 2004 and 2008, using an unexplained “lower rate”.

ASI provides “sales and marketing services” to Apple subsidiaries around the world that sell iPods and iPads. Between 2004 and 2008, it reported profits before tax totalling $7.11 billion on sales of more than $29 billion.

The accounts for those years state the corporation tax that would be due using Ireland’s 12.5 per cent rate – $890 million over the five years. But they also show how much corporation tax ASI actually paid to Irish authorities – just $36 million.

The difference between the two figures is explained each year by saying some profits were taxed at “lower rates” than Ireland’s headline 12.5 per cent corporate tax rate. The accounts do not explain by whom or how this rate was decided, or in what jurisdiction the lower tax was paid.

“The current tax charge is lower than the standard rate in Ireland, ” the accounts say.

There is no suggestion that Apple’s accounting was in any way illegal.

However, it is certain to reignite anger here and in the United States over the way large multinationals are able to manage their tax affairs.


Mystery tax rate
The figures have emerged only now from forgotten filings in Australia.

ASI is unlimited in Ireland, so does not need to file annual accounts. However, between 2000 and 2009, ASI was obliged to file its Irish accounts with authorities in Australia.


The Irish Times has obtained ASI’s accounts for most of these years.

Apple has been criticised in Australia in recent days over its use of Ireland to avoid tax on profits earned in Australia.

An analysis of ASI’s figures by the Australian Financial Review this week estimated Apple shifted almost nine billion Australian dollars (€6 billion) of its profits earned in that country to Ireland.

Last year, Apple was criticised by a US senate panel for avoiding billions of dollars in taxes by moving profits through Irish subsidiaries.

Apple executives admitted in those Washington hearings that the company paid a top tax rate of 2 per cent on $74 billion of sales outside North America over the previous three years, largely through its use of tax structures in Ireland.

Apple told the senate committee hearing into its tax affairs that it had a special tax deal as part of its decision to set up an Irish operation in 1980.

This was later denied by the Government.

It also emerged at the US hearing that some of Apple’s Irish entities were avoiding corporation tax because they are “stateless” – not tax resident in any jurisdiction owing to a loophole in Irish tax law.


Stateless for tax
However, the first mention by ASI that the company is stateless for tax purposes doesn’t appear in its accounts until 2009, the final year for which figures were obtained by The Irish Times . Apple declined to comment last night.
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  #2  
Old 07-03-2014, 11:30 AM
thomàs anderson. thomàs anderson. is offline
 
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We all partied.

The government knows all bout this already, their reaction is "Sure they've created loadsa jawbs loike, tis grand".

I'm pretty sure the pharmaceuticals are the same.
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  #3  
Old 07-03-2014, 12:28 PM
Wallace Wallace is offline
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Lads


Apple would surely throw a few bob our way to fund our independence bid as we throw off the usesless carcass of the Dublin based corrupt administration that leeches us daily ..
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  #4  
Old 07-03-2014, 12:50 PM
jimmym jimmym is online now
 
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last year there was a debate on 96fm re apple tax policy, a woman
rang in abusing those who questioned apples tax policy, her husband works there for years, she said she didn't give a damn about low paid agency workers up there as long as her husband was coining it, she was a typical spoilt celtic tiger bitch.
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  #5  
Old 07-03-2014, 12:56 PM
Coach and Six Coach and Six is offline
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I read recently that FDI from the U.S. pays out €17 billion in wages in Ireland every year.
The corporation tax they pay is far less at about €3 billion.
They also pay employers PRSI.

I don't like them not paying their due in corporation tax but some people think this is the only contribution they make. I wouldn't see it as a scam. They are working the system to their advantage and governments accidentally-on-purpose leave those loop holes open so that they'll stay here and keep paying out €17 billion in wages every year.

The hard thing for SME's in Ireland to swallow is that they don't have the resources to take advantage of these "loop holes". But without €17 billion in wages their restaurants, bars and clothes shops would do less trade.
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  #6  
Old 07-03-2014, 01:28 PM
Muintir Muintir is offline
 
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Quote:
Originally Posted by Coach and Six View Post
I read recently that FDI from the U.S. pays out €17 billion in wages in Ireland every year.
The corporation tax they pay is far less at about €3 billion.
They also pay employers PRSI.

I don't like them not paying their due in corporation tax but some people think this is the only contribution they make. I wouldn't see it as a scam. They are working the system to their advantage and governments accidentally-on-purpose leave those loop holes open so that they'll stay here and keep paying out €17 billion in wages every year.

The hard thing for SME's in Ireland to swallow is that they don't have the resources to take advantage of these "loop holes". But without €17 billion in wages their restaurants, bars and clothes shops would do less trade.
Can understand where you come from but two wrongs never made a right!
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Old 07-03-2014, 02:04 PM
Coach and Six Coach and Six is offline
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Quote:
Originally Posted by Muintir View Post
Can understand where you come from but two wrongs never made a right!
Look, the deal is pretty simple. Apple et al are monstrous global businesses. We in Ireland want a piece of the pie and we want to make sure we keep getting the pie so we lay on a few incentives to make sure they stay here - this tax "loophole" is the one we've gone for and the un-moveable corporate tax rate is also a massive incentive.

Think of it like a giant Tesco clubcard scheme. You get very little off if you spend 100e a week in Tesco but if someone has €1 million worth of groceries to buy every week you're going to give them a pretty tempting discount in case they go to your rivals.

U.S. foreign direct investment pays out €17 billion in wages to Irish citizens every year. That's €326 million per week going into the economy to be spent on goods and services and things like private health insurance that takes the burden off the state.

If some left wing nutjobs somehow got into power here and decided to jack up the corporation tax rate and close the loop holes to make it "fair" for other countries to compete for Google/Facebook/Apple's business they'd be gone in a second.

In same way people are flocking to the new Lidl on Cornmarket Street now because Tesco's prices are higher and they did away with a lot of the discounts for loyal customers.

Would you be happier if these so-called "two wrongs" were righted by closing the loopholes so that those companies will move elsewhere? We'd all be sitting at home unemployed with the satisfaction that those "wrongs" have been righted.

The fact is that they're not "wrongs" at all.
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  #8  
Old 07-03-2014, 02:10 PM
slick fingers slick fingers is offline
 
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Quote:
Originally Posted by Coach and Six View Post
I read recently that FDI from the U.S. pays out €17 billion in wages in Ireland every year.
The corporation tax they pay is far less at about €3 billion.
They also pay employers PRSI.

I don't like them not paying their due in corporation tax but some people think this is the only contribution they make. I wouldn't see it as a scam. They are working the system to their advantage and governments accidentally-on-purpose leave those loop holes open so that they'll stay here and keep paying out €17 billion in wages every year.

The hard thing for SME's in Ireland to swallow is that they don't have the resources to take advantage of these "loop holes". But without €17 billion in wages their restaurants, bars and clothes shops would do less trade.
This!

Like it or not, apple are an invaluable asset & have a massive economic impact on this county/country
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  #9  
Old 07-03-2014, 02:12 PM
Stacky Stacky is offline
 
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The Shinners,Headbanger independents and the Socialists believe that we can tax our way to recovery and repatriate profits from global corporations turning Ireland into the next Venezuela or Cuba.

Ireland has few natural resources and as an island off a bigger island off of continenental Europe it has to use any and every advantage it can get to attract F.D.I.
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  #10  
Old 07-03-2014, 02:45 PM
Rebel CNC Rebel CNC is offline
 
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Quote:
Originally Posted by thomàs anderson. View Post
We all partied.

The government knows all bout this already, their reaction is "Sure they've created loadsa jawbs loike, tis grand".

I'm pretty sure the pharmaceuticals are the same.
Every country is in on this. France bleats about out c tax rate and yet pours billions of taxpayer funds into propping up uncompetitive car and defence industry companies.


Ironically, if Apple, Boston Scientific, Dell etc. got tired of this shite and just moved all operations elsewhere, those now complaining about corporation tax structures would be the first ones banging on about the government not doing enough for job creation.
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