Apple has to pay 318 million Euros following tax fraud allegations

[Gabe Carey]

On an episode of 60 Minutes that aired last week, CEO Tim Cook called allegations of Apple's tax evasion 'total political crap' after being accused of holding $74 billion in revenues overseas. "Apple pays every tax dollar we owe," said Cook, a claim he'll likely regret making after today's news.

That's because Apple Italia, the company's Milan-based subsidiary, has reportedly neglected to pay €880 million (about $960.5 million) in taxes between 2008 and 2013, according to Italian news source la Republicca. The Cupertino-based tech behemoth now has to pay €318 million in fines (about $347.1 million) as a result of the investigation conducted by tax authorities in Italy. A representative of the tax agency in question has confirmed the validity of this report.

Apple Italia serves as part of the company's larger European operation based in Cork County, Ireland, where corporate taxes are at some of their lowest in the whole continent. Where Italy normally taxes corporate earnings at a rate of 27.5 percent, Ireland accepts a much more modest 12.5 percent.

While investigating Apple's tax history between the years of 2008 to 2013, authorities began to notice a sufficient gap amid the €1 billion in revenues earned by the company and the €30 million paid in taxes.

Though Apple itself has declined to comment on any of these reports, the company is not alone. In fact, European Commission has been investigating tax procedures of a wide variety of international corporations, like Apple, to find out which ones are using cross-border frameworks to relieve or reduce taxes owed -- occassionally with the aid of covert and unlawful "sweetheart" deals.

Apple's questionable arrangements in Ireland have resulted in widespread conflict about the legalities of "parking" earnings in low-tax countries to avoid higher payments. Investigators will soon reveal whether or not this sort of behavior should be classified as illegal state aid.

Apple has headquartered its European operations in Ireland since 1980 and has since made plans to grow its employee count 6,000 in that location.

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https://www.techspot.com/news/63297-apple-has-pay-318-million-euros-following-tax.html

 

[Uncle Al]

Awwwwww shot! There goes my end of year dividend check!

 

[umbala]

What comes out of Tim Cook's mouth is 'total political crap' most of the time. Of course he's going to defend his company. I don't like Tim Cook, but I absolutely hated Steve Jobs and I'm glad he's dead. Unlike other billionaires he never really helped anyone or made any large donations to the needy. Karma is a *****. Actually, I didn't hate Jobs because he was a greedy, selfish prick (although that would be reason enough in on itself), but because he was an arrogant douchebag of epic proportions. Anyway, that's just my opinion and I'll probably get flamed for it, but oh well.

 

[Satish Mallya]

What comes out of Tim Cook's mouth is 'total political crap' most of the time. Of course he's going to defend his company. I don't like Tim Cook, but I absolutely hated Steve Jobs and I'm glad he's dead. Unlike other billionaires he never really helped anyone or made any large donations to the needy. Karma is a *****. Actually, I didn't hate Jobs because he was a greedy, selfish prick (although that would be reason enough in on itself), but because he was an arrogant douchebag of epic proportions. Anyway, that's just my opinion and I'll probably get flamed for it, but oh well.

He was a *charismatic* arrogant douchebag -the most dangerous kind.
I'm just glad he wasn't involved in politics or religion, where he could have done real harm.

 

[Evernessince]

I remember those comments Tim Cook Made last week. He said that Apple would rather not pay taxes in America because they are too high. He also said that chinese workers are more skilled than American (which doesn't make sense since they design their devices in America).

The only reason Apple hasn't been charged for tax fraud in America yet it because our government is corrupt as hell. The frickin NFL is somehow considered a non-profit and pro NSA laws are passed regardless of what the public wants. In fact, I can't really think of the last time congress passed a bill than benefited the American people that didn't have some other crap tacked onto it.

 

[Skidmarksdeluxe]

I remember those comments Tim Cook Made last week. He said that Apple would rather not pay taxes in America because they are too high. He also said that chinese workers are more skilled than American (which doesn't make sense since they design their devices in America).

The only reason Apple hasn't been charged for tax fraud in America yet it because our government is corrupt as hell. The frickin NFL is somehow considered a non-profit and pro NSA laws are passed regardless of what the public wants. In fact, I can't really think of the last time congress passed a bill than benefited the American people that didn't have some other crap tacked onto it.

Show me any government that isn't corrupt and I'll show you something that is non existent.

 

[Skidmarksdeluxe]

Cough up! What $350 mil to Apple anyway? They made more that amount as I started and before I could finish typing this post, editing afterwards notwithstanding.

 

[Lionvibez]

Cough up! What $350 mil to Apple anyway? They made more that amount as I started and before I could finish typing this post, editing afterwards notwithstanding.

lol its still a win for apple.

It says they owed 960.5 million and the fine is only 347 million.

If they have to pay the fine plus what they owe then ya that sucks but if its only the fine seems worth it to me when you run the numbers.

 

[Skidmarksdeluxe]

lol its still a win for apple.

It says they owed 960.5 million and he fine is only 347 million.

If they have to pay the fine plus what they owe then ya that sucks but if its only the fine seems worth it to me when you run the numbers.

Apparently they're expecting a ridiculous amount of money from Samsung again because of patent infringements (what else?) who have 10 days to pay. Apple can use that to squelch the tax evasion charge. There's no honour among thieves.

 

[Capaill]

The fine is on top of what they owe.
Otherwise the fine would be 960.5 million