Posted on 09/02/2016 11:15:34 PM PDT by Cronos
...Apple first arrived in Ireland in 1980 when it launched a manufacturing plant in Holyhill, above Cork. Steve Jobs announced £7 million in investment in the country, along with 700 new jobs.
In 1990, Apple's financial team met with the Irish government to draft an arrangement for how much tax it paid in the country..The message is clear: We've been here for 10 years, we're a vital part of Cork, and if you don't strike a deal with us then maybe we'll go elsewhere.
The Irish government agreed a deal with Apple in 1991 to only tax a certain bracket of its earnings, giving it a dramatically lower tax rate than it would have to pay in the US. Apple got its lower tax rate, and Ireland kept Apple in the country. For a long time, that arrangement worked well. But as Apple's profits soared, the EU started to look more closely at the deal.
It's illegal for a government in the EU to strike a so-called "sweetheart deal" with a company. The European Commission classes those deals as illegal state aid, and it has decided that Ireland's deal with Apple is exactly that.
(Excerpt) Read more at businessinsider.com ...
I’m just curious....what are the real numbers on profits, versus taxes paid to Ireland, and number of employees within Ireland.
Apple managed to move billions of Euros from Ireland to communist China this way. A victory for capitalism and free enterprise!
Btt
this is a simplified version of what happens.
the real thing is called ‘Double Irish taxation’,
or something like that.
Apple-Ireland pays a Chinese company $50
fir a smartphone.
Apple-Ireland puts a sticker on the phone.
Apple-US buys that phone for $400.
Apple-US sells that phone to its sales dept for
$450.
Apple-Us owes 2 cents in federal corporate tax.
Apple pays a modest amount in California and local tax.
Apple then supports higher taxes for everyone else here in the USA so the democrats leave them alone.
must be nice...
How is this different from cities giving a tax deal to build stadiums or auto plants in their district?
The EU doesn’t have rules against US cities doing that.
Apple didn’t need state aid, usually when I hear about aid it is to assist a company with unfair competitiveness advantages that enables a company to undercut the prices to gain market share.
Apple has two registered companies in Ireland: One for employees selling services and manufacturing ans the other (Apple Overseas International) that holds money from other countries waiting for a US tax holiday on overseas repatriated earnings before that money comes to the USA
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