Monday, 07 September 2015 06:00

Apple and Ireland facing $27 billion wrath of EU regulator over tax rort Featured

By
EC Commissioners EC Commissioners

Apple’s favourable tax treatment in Ireland may soon come to an end as EU regulator the European Commission gets ready to act on findings initially made in June 2014. If the EC does force Ireland to comply with its tax findings, the decision could cost Apple €17 billion (AUD$27 billion) in Ireland alone plus several billion more in countries around the world, including Australia.

Over the weekend the Irish press has been reporting that the EC will act against Ireland within months and force it to recoup 10 years worth of tax from Apple, which has admitted to paying an effective tax rate of just 2% in the country over that period.

Under the arrangement that Apple has with Ireland, the corporate colossus uses the country as its global distributor in exchange for paying a minuscule tax rate. The effect on countries such as Australia is that the local subsidiary, which buys products such as iPhones and iPads from the Irish subsidiary for an artificially high price, makes an abnormally low profit and therefore pays an effective low tax rate.

The alleged Irish tax rort was highlighted in a corporate tax avoidance Australian Senate Committee hearing in April this year, where the country manager of Apple was questioned rigorously.

The Australian Government, however, has yet to act against Apple and other tech multinationals accused of tax rorts, such as Google and Microsoft.

Quoted in the Irish Times over the weekend, a representative of an Irish law firm postulated that the EC is likely to act against Ireland and force it to recoup tax from Apple.

“The commission’s initial findings appear to be quite robust,” said Marco Hickey, head of EU, competition and regulated markets at Irish law firm LK Shields. “Based on that, it would seem that they’re more minded than not to make a negative final decision against Ireland.”

If the EC acts against Ireland and Apple, the company will throw every legal resource it has at its disposal against any negative ruling, as the financial repercussions of such a ruling would be catastrophic for the company globally.


Subscribe to ITWIRE UPDATE Newsletter here

Now’s the Time for 400G Migration

The optical fibre community is anxiously awaiting the benefits that 400G capacity per wavelength will bring to existing and future fibre optic networks.

Nearly every business wants to leverage the latest in digital offerings to remain competitive in their respective markets and to provide support for fast and ever-increasing demands for data capacity. 400G is the answer.

Initial challenges are associated with supporting such project and upgrades to fulfil the promise of higher-capacity transport.

The foundation of optical networking infrastructure includes coherent optical transceivers and digital signal processing (DSP), mux/demux, ROADM, and optical amplifiers, all of which must be able to support 400G capacity.

With today’s proprietary power-hungry and high cost transceivers and DSP, how is migration to 400G networks going to be a viable option?

PacketLight's next-generation standardised solutions may be the answer. Click below to read the full article.

CLICK HERE!

WEBINAR PROMOTION ON ITWIRE: It's all about webinars

These days our customers Advertising & Marketing campaigns are mainly focussed on webinars.

If you wish to promote a Webinar we recommend at least a 2 week campaign prior to your event.

The iTWire campaign will include extensive adverts on our News Site itwire.com and prominent Newsletter promotion https://www.itwire.com/itwire-update.html and Promotional News & Editorial.

This coupled with the new capabilities 5G brings opens up huge opportunities for both network operators and enterprise organisations.

We have a Webinar Business Booster Pack and other supportive programs.

We look forward to discussing your campaign goals with you.

MORE INFO HERE!

BACK TO HOME PAGE
Stan Beer

 

Stan Beer co-founded iTWire in 2005. With 30 plus years of experience working in IT and Australian technology media, Beer has published articles in most of the IT publications that have mattered, including the AFR, The Australian, SMH, The Age, as well as a multitude of trade publications.

Share News tips for the iTWire Journalists? Your tip will be anonymous

WEBINARS ONLINE & ON-DEMAND

GUEST ARTICLES

VENDOR NEWS

Guest Opinion

Guest Interviews

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News

Comments