Screen Shot 2016-06-17 at 09.18.05

Taoiseach Enda Kenny at the opening of a new €150million data centre at Google’s offices in Dublin yesterday

Dara Doyle and Stephanie Bodoni, of Bloomberg, report:

Near the top of the agenda [in Brussels] for investors continues to be the European Commission’s probe into Apple Inc.’s tax arrangements in Ireland, with both the company and the Irish authorities bracing for a decision that the Irish provided the iPhone maker with illegal state aid through a sweetheart deal.

In the first clues to a firm timeline for a decision on a probe which opened in 2014, Irish Finance Minister Michael Noonan told Bloomberg on Thursday in Luxembourg that the commission may publish a decision sometime in July, though “we don’t know that with certainty.”

…There’s a range of estimates out there. In a worst-case scenario, Apple may face a $19 billion bill if the government ultimately loses and is forced to recoup tax from the company, according to JPMorgan Chase & Co. analyst Rod Hall. Matt Larson of Bloomberg Intelligence puts the figure at more than $8 billion.

Who gets the cash? Notionally, Ireland, even though the government says it doesn’t want it.

Why doesn’t Ireland want the cash, which after all could be equivalent to about all of the nation’s corporate tax last year? There’s a bigger picture, here, according to briefing notes provided to the incoming finance minister last month; a negative decision would hurt the country’s reputation and create uncertainty around it’s tax offering, which has been a key factor in drawing companies like Alphabet Inc.’s Google and Facebook Inc. to Dublin.

Ireland and Apple Brace for the Worst as Tax Endgame Nears (Bloomberg)


Sponsored Link

13 thoughts on “How Much?

  1. Frilly Keane

    I’ll take it

    ‘tell ya wha’
    I’ll even calculate it
    And then spilt it out
    Per head btw
    Amongst my Twitter followers

  2. ahjayzis

    “In a worst-case scenario, Apple may face a $19 billion bill if the government ultimately loses and is forced to recoup tax from the company”

    This is just so depressing.

    In one fell swoop we could have our Pension Reserve Fund replenished to levels it was at before it was used to pay for private debt, and Noonan’s doing everything in his power, spending our money, so Apple can continue to stiff us on tax.

      1. ahjayzis

        Morals, public service, ones duty of care to one’s country, economic sense, social justice etc. etc.

  3. ollie

    “it’s tax offering, which has been a key factor ”
    Not true. While it’s helped, having a relatively safe Country, English speaking well educated workforce, relatively affordable city centre accommodation, good infrastructure are the key factors.

    1. some old queen

      Maybe so but the government are doing all they can to keep Ireland a tax free zone for these corporations.

      Even at 8 billion, that is a lot of staffed hospital beds.

      1. ahjayzis

        That’s probably several dozen brand new hospitals to boot. A generation of new social housing. World class telecoms for the whole country…

    2. MoyestWithExcitement

      +1 We might well be the only English speaking country in the EU soon. They’re not going to relocate to eastern countries while there’s genuine worry about Putin getting imperial notions. Also, maybe the likes of Google and Apple, with their ‘West coast philosophy’ as regards as their employees, might be open to the argument that the tax we’d get will benefit them in the long run by ultimately making the loves of their employees better. Probably not though.

      1. MoyestWithExcitement

        *lives of their employees better. Although maybe paying for hookers for your staff might help with productivity as well.

  4. Sido

    Well he would say that wouldn’t he? Perhaps he’ll cry all the way to the bank with his lodgement book FFS.

  5. AdvertisingOnPoliceCars

    Think of the bigger picture…the continued tax inversion/avoidance by these Global firms allows us to..ah feck it…

Comments are closed.

Sponsored Link