Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Apple tax ruling not a sound basis for tax policy | Irish Examiner

THE European Commission's extraordinary ruling means it believes 60% of Apple's profits should be taxed in Ireland. Apple does have significant functions in Cork, but there is no way it contributes more than half of its profits.

Apple is hugely profitable because it designs a phone in California that is manufactured in China and branded all around the world that people want to buy. None of those activities are based in Cork.

If Apple was declaring 60% of its profits in a Caribbean island, there is no doubt the European Commission would be accusing it of using a tax haven. But yesterday the commission decided that Apple should be declaring 60% of its profit in a European island. It's as if it wants us to be tax haven.


Of course, the US corporate tax regime is no shining light, and many of the current problems stem from the US tax code. If US companies were not provided with provisions that allow them to defer the payment of much of their US tax, then many of these issues would not arise in the first place.


If this wasn't the most profitable company in the world it is likely that the arrangements in place would have attracted little attention. If this was a company that had large sales but low profit margins, then the profit attributed to the Irish branches would seem generous and the tax payments more than adequate.

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Wed Aug 31st, 2016 at 08:54:27 PM EST

Others have rated this comment as follows:


Occasional Series