Despite Tim Cook's Trashtalking, Apple Will Pay Italy $348 Million In Back Taxes

Despite Tim Cook's Trashtalking, Apple Will Pay Italy $US348 ($477) Million in Back Taxes

Apple, like many other companies, is infamous for funelling money through its European headquarters in Ireland and benefitting from a lower tax rate. Well, Italy's had enough of it, and Apple just agreed to pay the boot-shaped country $US348 million in back taxes. Tim Cook must be pissed. Tim Cook must be pissed since earlier this month he called the tax controversy "total political crap". Apple's also been accused of robbing the United States of billions in unpaid taxes, while Cook boldly told Charlie Rose, "Apple pays every tax dollar we owe." The settlement brokered in Italy would suggest otherwise. But hey, when you're the world's most valuable company, you can afford to wash your problems off with cold hard cash.

[The Guardian]

Image via Getty


Comments

    Generally when normal folk owe that much tax to the government they go to jail but im sure Apple can just break out their coin purse to make this go away

      You only go to jail if you don't make arrangements to pay.

      Depends really. The country is the one that has allowed these loopholes to exist and any business with intelligence would do their best to exploit these laws. Sure, it would be great if Apple and the like all paid their normal tax rates but they're literally in the business to make money.

      The Government could take steps and measures to close these but they refuse to do so. The responsibility to ensure we(Country) receive the 'fair' share of tax is to get our government to step up and take ownership of the issue at hand.

      At least that's how I see these issues being fixed permanently.

    Perhaps our government will do the same so we don't have to make cuts to essential services

      Nah man just raise the GST instead. the GST only really worries plebs, and the Liberals don't have to deal with plebs.

        The State Labor governments were the ones to ask for a hike in the GST. Not the Feds.

    Far as I'm concerned the Italians just set a precedent and the rest of the world should follow suit. Offshore tax assets should be banned by all governments.

      makes sense to pay the countries tax rate to operate in said country.

      The original bill was more like $800m+ and the government settled for less than half.

      Not sure it's the best precedent, especially when they're sending thousands of small businesses bust because they won't entertain payment plans like the ATO might and everybody gets zero.

      This tax debate highlights how we are now living in a two tier society with the top 1% getting special treatment.

    After this (If the action is actually ultimately successful) the Multinationals will just change their business structure, to a more impenetrable and internationally tax effective one.

    Rather than purchasing licenses and products from Majority/Wholly-owned Private foreign companies they will just sell/transfer their IP across to Wholly Independent (cough) private Foreign trusts (If they haven't already) answerable only to their trustee Board and country of registration. The contractual obligations and intimate details will then be ensconced within the Private Trust Deeds (Filed with the foreign country, but as a Private Covenant, not Publicly reportable).

    Thereafter, as neither the corporate entity residing in the USA, AUS, EUR, etc, nor its Publicly registered Holding corporation will have any influence in the product pricing structure and employment terms of its contracted workers (via outsourcing to foreign independent corp), the fact that it makes ZERO profit in country will result in a zero tax liability, regardless of the value of trade which passes through its books.. Its very hard to make any profit as a multinational corporation these days...

    LOL> Troll on.

    These corps will also implement blockchain based crypto-transactions within their network, transferring "worth" around the world with no regard to currency or embargoes.
    (If they trade in commodities rather than claiming a "currency" there are few financial controls on virtual trading, after all it is just a computer game, with very real buy-ins.)

    Last edited 31/12/15 3:08 pm

    All the government needs to do is charge tax on every item sold to citizens. Apple reports that they sold 100,000 iPhails, they pay tax on 100,000 iPhails.

      Agree completely. Are we paying attention ATO??? Is anyone awake over there?

        Are we paying attention ATO??? Is anyone awake over there?

        BWAHAHAHAHAHAhahahahah

        Are you joking right now? Of course they aren't!

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