4 ms·

This is a curious case of bait and switch. Ireland attracts Apple through low taxes. The EU rules this is an illegal subsidy for Apple by Ireland, harming other

This is a curious case of bait and switch. Ireland attracts Apple through low taxes. The EU rules this is an illegal subsidy for Apple by Ireland, harming other member states. So why should Ireland be entitled to the money, but not those member states?

amiga386 2y ago
Ireland doesn't even want the 13 billion, because if it collects, it knows Apple will be looking for a new HQ and all the Apple jobs and payroll taxes and secondary economic activity will leave Ireland. Really, Ireland helped US companies evade tax, but the EU is just codifying this unfair advantage of Irish tax law as "state aid". The EU made Ireland close the "Double Irish" arrangement in 2015 (https://en.wikipedia.org/wiki/Double_Irish_arrangement https://en.wikipedia.org/wiki/Double_Irish_arrangement), this 13 billion is how much tax Apple avoided paying Ireland by using that structure, compared to having a normal company structure (sales in other EU member states -> revenue banked in Ireland) The EU didn't outlaw software/IP licensing! Until it does, Apple can still say that Apple Ireland licenses e.g. Final Cut Pro to Apple Germany for 298 EUR, and Apple Germany sells a German customer a copy for 299 EUR, banking 1 EUR revenue in Germany and 298 EUR revenue in Ireland. That's why other member states don't get the money.
- electriclove 2y ago
  Would Ireland consider leaving the EU?
  - fullspectrumdev 2y ago
    No. Support for remaining in the EU is incredibly high. In fact, these economic arrangements with MNC’s are rather unpopular - especially given native businesses don’t get the same tax breaks.
  - Rinzler89 2y ago
    Why would they consider that? If they do, Apple and all those companies would also leave since Ireland's EU membership is what kept them there. Withtout that their HQs there become worthless.

4 ms·

This is a curious case of bait and switch. Ireland attracts Apple through low taxes. The EU rules this is an illegal subsidy for Apple by Ireland, harming other

by incrudible 2y ago

amiga386 2y ago
Ireland doesn't even want the 13 billion, because if it collects, it knows Apple will be looking for a new HQ and all the Apple jobs and payroll taxes and secondary economic activity will leave Ireland. Really, Ireland helped US companies evade tax, but the EU is just codifying this unfair advantage of Irish tax law as "state aid". The EU made Ireland close the "Double Irish" arrangement in 2015 (https://en.wikipedia.org/wiki/Double_Irish_arrangement https://en.wikipedia.org/wiki/Double_Irish_arrangement), this 13 billion is how much tax Apple avoided paying Ireland by using that structure, compared to having a normal company structure (sales in other EU member states -> revenue banked in Ireland) The EU didn't outlaw software/IP licensing! Until it does, Apple can still say that Apple Ireland licenses e.g. Final Cut Pro to Apple Germany for 298 EUR, and Apple Germany sells a German customer a copy for 299 EUR, banking 1 EUR revenue in Germany and 298 EUR revenue in Ireland. That's why other member states don't get the money.
- electriclove 2y ago
  Would Ireland consider leaving the EU?
  - fullspectrumdev 2y ago
    No. Support for remaining in the EU is incredibly high. In fact, these economic arrangements with MNC’s are rather unpopular - especially given native businesses don’t get the same tax breaks.
  - Rinzler89 2y ago
    Why would they consider that? If they do, Apple and all those companies would also leave since Ireland's EU membership is what kept them there. Withtout that their HQs there become worthless.