EC launches Apple tax investigation The European Commission has launched a formal investigation into Apple’s tax arrangements in Ireland The EC has announced three “in-depth investigations” into the transfer pricing arrangements on the corporate taxation of Apple, Starbucks in the Netherlands and Fiat in Luxembourg, as to whether they comply… – Continue reading
Apple Operations International, the principal Irish holding company for foreign subsidiaries, was not always stateless for tax purposes based on the last filed accounts in Ireland. It stopped paying tax in Ireland from 2006, based on US Senate Permanent Subcommittee on Investigations evidence. The most explosive revelation in the May… – Continue reading
The European Commission is set to open formal investigations into Apple’s tax arrangements with Ireland. Last year, the US Senate accused the country of functioning as a “tax haven for Apple.” By funnelling profits into Irish subsidiaries that had no declared tax residency, the company was able to pay just… – Continue reading
Apple Operations International, the principal Irish holding company for foreign subsidiaries, was not always stateless for tax purposes based on the last filed accounts in Ireland. It stopped paying tax in Ireland from 2006, based on US Senate Permanent Subcommittee on Investigations evidence. The most explosive revelation in the May… – Continue reading
Tax breaks for Apple Inc. (AAPL:US), Starbucks Corp. (SBUX:US) and Fiat Finance & Trade SA in three European Union countries are under investigation by EU competition regulators in a clampdown on special treatment for companies. The EU is checking whether the tax deals in Ireland, the Netherlands and Luxembourg are illegal state aid, according to… – Continue reading
Reuters) – The European Commission raised pressure on Ireland, the Netherlands and Luxembourg over their corporate tax practices, saying it was investigating deals the countries have cut with Apple, Starbucks and Fiat. The EU is looking at whether the countries’ tax treatment of multinationals, which help to attract investment and… – Continue reading
Additional details on the allegedly impending investigation from the European Commission were not shared by the initial source, Ireland’s RTE, according to Reuters. A formal announcement of the investigation is expected to follow.It’s already been established through other investigations that Apple has not broken any laws in utilizing Ireland as a tax haven,… – Continue reading
Irish state broadcaster RTE reports that the European Commission had decided to launch a formal investigation into Apple (AAPL)’s tax arrangements in Ireland. An announcement is expected by EU’s Competition Commissioner to follow: “The European Commission is to open a formal investigation into Apple’s tax arrangements with Ireland. An announcement is expected to… – Continue reading
The probe, announced on Wednesday by Europe’s competition commissioner Joaquín Almunia, will look into whether the low rate of tax Apple pays in Ireland breaks European state aid rules. Apple pays less than two percent tax in the country — far less than the standard 12.5 percent corporation tax… – Continue reading
Corporate Tax Avoidance: Last week the news that Apple is considering buying Beats Electronics, a maker of expensive headphones that was founded by record mogul Jimmy Iovine and rap artist Dr Dre, for $3.2bn, got a lot of media attention. Dr Dre must have pissed-off Apple when he bragged on… – Continue reading
Large subsidiaries of multinationals, such as Apple and Google, which are based in Ireland are able to escape paying corporation tax due to an “exceptional” interpretation of tax laws by the Revenue Commissioners, a new study claims. A research paper by James Stewart, associate professor in finance at Trinity College… – Continue reading
NEW YORK (TheStreet) — The Securities and Exchange Commission is serious about going afterApple’s (AAPL_) off-shore cash. In a letter of comment to Apple’s in-house counsel, SEC accounting branch chief Kathleen Collins challenged the company’s aggressive accounting policies. Apple has about $16 billion of offshore cash exempt from taxation by the Internal… – Continue reading
On Tuesday, the House Ways and Means Committee holds a hearing to discuss making permanent several of multinationals’ favorite tax code provisions, including the Apple loophole. Thus the House, like the Senate, is in the early stages of enacting these expired provisions yet again. That’s how Congress traditionally gives multinationals their offshore tax loopholes: propose… – Continue reading
Adds £118m to ‘tax under consideration’ from intra-group transfers • HMRC proposes further crackdown on intra-group transfers in Budget HM Revenue & Customs has increased the amount of tax it estimates has been underpaid by the UK’s largest businesses through transfer pricing arrangements by £118 million to more than £1.1 billion, an… – Continue reading
Caterpillar avoided $2.4 billion in federal taxes between 2000 and 2012 by shifting $8 billion in profits from international parts sales to a tax haven in Switzerland, said Chairman Carl Levin, (D-MI), of the Senate Permanent Subcommittee on Investigations on Monday. Joining Microsoft (MSFT), Hewlett Packard (HPQ) and Apple (AAPL),… – Continue reading
A call to tax technology companies such as Apple and Google in the countries where they have substantial activities has re-ignited concerns companies may be taxed twice and stop business altogether. The Organisation for Economic Co-operation and Development, which is working on a global plan to prevent companies from avoiding paying… – Continue reading
The Tax Office is allowing Australians with money parked in offshore accounts to avoid harsh penalties by coming forward, in an amnesty program worth up to half a billion dollars. ATO Commissioner Chris Jordan will announce the program today, which will reduce the penalties for taxpayers who hand over information… – Continue reading
OECD plan to make practice of shifting locations ineffective New rules aimed at preventing the type of aggressive tax avoidance schemes run by some of the largest multinational employers here will begin to be introduced in September, according to a draft report seen by The Irish Times . Structures that artificially shift… – Continue reading
Caterpillar (CAT:US) Inc. began defending its international tax maneuvers as a U.S. Senate investigative panel set an April 1 hearing to examine the company’s “offshore tax strategy.” Representatives from Caterpillar and PricewaterhouseCoopers LLP will testify, according to the hearing notice posted today by the Senate’s Permanent Subcommittee on Investigations. The committee, led… – Continue reading
Apple, amazon, and other digital item retailers will have to charge 20% VAT starting in 2015 A long-standing tax loophole has been available in the UK that allowed buyers of digital download products to pay fewer taxes on their purchases of digital books, music, and apps. That loophole has now… – Continue reading
European Union competition watchdogs ordered Luxembourg to hand over details of tax breaks for businesses after they said the Grand Duchy was hindering a state-aid probe spanning several EU nations. Luxembourg refused to deliver details concerning the 100 largest companies benefiting from a special program for companies whose profits stem… – Continue reading
European Union antitrust regulators ordered Luxembourg on Monday to hand over information on its corporate tax practices as part of their investigation into tax loopholes which have allowed companies such as Starbucks and Apple to cut their tax bills. The move by the European Commission came after Luxembourg failed to… – Continue reading
U.S. corporations added at least $206 billion to their stockpiles of offshore profits last year, parking earnings in low-tax countries until Congress gives them a reason not to. They have accumulated $1.95 trillion outside the U.S., up 11.8 percent from a year earlier, according to securities filings from 307 corporations…. – Continue reading
The Canada-BVI Tax Information Exchange Agreement (“TIEA”) came into force on 11 March 2014. The TIEA was signed in May 2013, and the effective date provisions are set out in Article 13 of the Agreement. The BVI is now party to 25 TIEAs. What are the benefits? The BVI/Canada TIEA is significant due… – Continue reading
Companies have every right to minimise their own tax burdens, but shrinking your footprint only lasts so long before someone gets annoyed. For Apple Australia and Google Australia, that time might be nigh as the Australian Taxation Office (ATO) reportedly gears up to investigate the pair for tax minimisation. The ABC… – Continue reading
US companies appear to be thumbing their noses at a global crackdown on tax avoidance, with share registry group Computershare reporting an increase in multinationals re-incorporating in Ireland. In a briefing to investors on its regional outlook last week, Computershare said its Irish division had noticed ”further momentum in US… – Continue reading
Global technology giants such as Apple, Google and Amazon could soon be charged a tax on their UK activities in an attempt to stop them sidestepping their responsibilities. Britain is working with nine other countries to draw up shared dossiers on the tax affairs of such groups, it was revealed… – Continue reading
The U.S. Virgin Islands is attempting to lure small businesses with substantial corporate tax breaks, in a bid to create jobs and diversify the tiny territory’s $4.2 billion economy. Democratic Gov. John de Jongh toured New York late last week with regional economic development officials, meeting companies and investors. De… – Continue reading
The benefits of the New Zealand Government’s desire to push export led growth, as part of its overall economic strategy, could be stymied by a lack of clarity over proposed cross-border tax changes. New research from the Grant Thornton International Business Report survey (IBR) reveals that New Zealand business leaders… – Continue reading
Some states are going after multinational corporations which avoid state taxes by stashing some of their earnings in offshore tax havens, an effort aimed at recouping some of the more than $20 billion states lose to such gimmicks each year. Shifting income to subsidiaries in places like the Cayman Islands… – Continue reading
The largest U.S.-based companies added $206 billion to their offshore profit stockpiles last year in order to put earnings in low-tax countries, Bloomberg reported. Multinational companies accumulated $1.95 trillion outside the U.S., which was up 11.8 percent from a year earlier, according to securities filings from 307 corporations reviewed by Bloomberg. Governments… – Continue reading
OECD tax director Pascal Saint-Amans has played down concerns that the United States might resist plans to make multinational companies such as Apple and Starbucks pay more tax, arguing that governments must move quickly to close multibillion-dollar loopholes or risk ordinary citizens losing faith in their taxation systems. Mr Saint-Amans… – Continue reading
LONDON — Four of the biggest U.S. technology groups collectively hold an estimated $124 billion in U.S. Treasury debt, much of it offshore, earning them tax-free interest, the UK’s Bureau of Investigative Journalism (BIJ) said on Thursday. The finding means Apple Inc, Microsoft Corp, Google Inc and Cisco Systems Inc… – Continue reading
United States taxpayers make large interest payments to the top four technology firmsfor the $163 billion in US government debt the companies own and shelter in tax-freeoffshore accounts. Apple, Cisco Systems, Google, and Microsoft legally hold $124 billion in US Treasury securities and $39 billion in US government agencydebt in accounts overseas, allowing them to avoid the 35… – Continue reading
Apple Inc., IBM Corp. and Microsoft Corp. have been picked out as some of the main culprits of stockpiling profits abroad in order to avoid huge tax bills, according to Bloomberg. Last year, the largest U.S. firms collectively added an extra $206 billion to their offshore profit stockpiles based in low-tax countries. Together the… – Continue reading
Apple, famous for its innovative products, is equally creative in its tax structure. From 2009 to 2012, it successfully sheltered US$44 billion from being taxed anywhere in the world, including sales generated in Australia. While there are probably some sound reasons for Apple’s CEO, Tim Cook, to claim in a US congressional… – Continue reading
Eighteen American multinationals – companies such as Nike, Microsoft and Apple – have used tax havens abroad to avoid what Citizens for Tax Justice estimates as $92 billion in federal taxes. This is money that could be used to provide universal pre-school for America’s children. CTJ also found 235 companies… – Continue reading
As concerns about crumbling roads and bridges mount, one Congressman believes he has an answer. Sen. Michael F. Bennet (D-CO) has introduced a bill, Partnership to Build America Act of 2014 (S. 1957), that would provide for investments and improvements in infrastructure projects. To make it more palatable, funding would… – Continue reading
In an attempt to stop multinationals shifting profits overseas Australia’s Tax Office is launching a task force to investigate 86 large corporations’ tax activities. The tax office is looking into companies that use complex structures to move profits through tax havens as well as those that are using thin capitalisation,… – Continue reading
The Australian press is incandescent with rage after it discovered that the fruit themed cargo cult Apple has worked out a way of avoiding giving billions to its taxman. Apple is already in hot water for overcharging Australians for its shiny toys and now it seems that it is refusing to pay tax…. – Continue reading
(Reuters) – Plans to make companies reveal how much tax they pay country by country were abandoned on Wednesday, knocking back the efforts of lawmakers who had pushed to curb tax avoidance by multinational businesses. Schemes used by Starbucks (SBUX.O), Apple (AAPL.O), Amazon (AMZN.O) and other corporations operating within the… – Continue reading
G20 finance ministers speak loudly, mention big stick The world’s top 20 finance ministers have signalled once again that they’re sick of their taxes disappearing offshore and have signalled a strong intention to get their cash back. The ministers in question are all members of the Group of Twenty (G20)… – Continue reading
Finance ministers and central bankers from the world’s most powerful economies have vowed to crack down on offshore tax evasion by big multinationals. Bill English was among the who’s who of the finance world meeting in Sydney yesterday. New Zealand is not one of the G20 but was conferred unofficial… – Continue reading
Zara’s celebrity chic helps make its Spanish parent company, Inditex SA, the world’s biggest fashion retailer. Singer Taylor Swift, reality-television personality Kim Kardashian and Kate Middleton, Prince William’s wife, have all been spotted wearing the stylish, low-cost brand. Another reason for Inditex’s industry-best profit margins of almost 15 percent: the… – Continue reading
The G20 finance ministers have once again agreed to cooperate to counter aggressive cross-border tax avoidance by multinationals. Many US firms are using tax avoidance schemes for their non-US earnings while they shamelessly claim they are paying appropriate taxes in the source countries in which they operate. The OECD responded to earlier… – Continue reading
Group-of-20 nations agreed to implement a global standard for automatically exchanging information between tax authorities by the end of 2015, the Organization for Economic Cooperation and Development said. The endorsement is a step toward putting an end to “banking secrecy as we know it,” Pascal Saint-Amans, director of the OECD’s… – Continue reading
The days of multinational companies being able to use the Double Irish Dutch Sandwich to avoid taxation may soon be coming to an end, with the G20 group of nations looking to create a reporting standard to allow for automatic exchange of tax information. In the official communique coming at the end… – Continue reading
Congress is on a roll, trying to track down hidden offshore accounts, and the latest news is a report that shows which states have the most taxpayers disclosing such accounts (California is No. 1), and where they are located (Switzerland is tops). All told, taxpayers in at least 45 states… – Continue reading
In a world of widening inequality, it is perhaps the most pernicious injustice of them all. Multinational corporations and wealthy individuals avoiding tax on an unprecedented scale, shuffling assets, income and debt to the most favourable tax jurisdictions and confounding hapless authorities. It is impossible to identify exactly how much… – Continue reading
Former treasurer Wayne Swan has warned that Australia risks losing global influence unless this year’s G20 summit achieves concrete results on issues such as multinational tax avoidance. Ahead of this weekend’s meeting of G20 finance ministers and central bankers in Sydney, Mr Swan also urged the Abbott government not to… – Continue reading
