There are 13 billion euros that Apple, according to the European Commission, should pay to Ireland to comply with taxes. The EU has thus quantified the amount of outstanding taxes that must be recovered and which relate to the period 2003-2014. The final decision, in any case, rests with the Dublin tax authorities, which will have to determine the exact and definitive amount. But how did we get to this point?
Stefano Quintarelli explains it to us, who on his blog has collected these 7 very significant graphs.
First graph: how much Apple earns and how much tax it pays, in total.
Does everyone do this? what are the complaints against multinationals? Here are some from CNBC:
How Much Tax Does Apple Pay in the US? and abroad? (The first I did from balance sheets, the second is from FT)
The statutory federal income tax rate is 35%. Apple explains that it pays less in the US (about 26%) because part of the money that would be taxable in the US is kept abroad to be reinvested there.
Abroad, judging by the graph, it is more or less 5,5%, about a seventh of the US tax and about a fifth of what Apple pays in the US.
Where does Apple put all the money it doesn't bring to the US, to pay less taxes? (CNBS and FT)
And what's he doing with that money? (balance)
…retained income generated by subsidiaries organized in Ireland on which no US taxes are paid because that income is to be reinvested indefinitely outside the US. (it would be hoped they would invest them, therefore! ed)
I translate with a machete: there are 200 billion (187 according to the FT) in current accounts of 'organized' (not established) branches in Ireland “… these Irish entities paid little tax because they were not tax resident anywhere – a structure that exploited differences between the US and Irish definitions of residence”
What does the founder of Apple think? (Steve Wozniak, the one still alive).
