Apple Tax Haven

 

 

It’s fair to say there has been quite a kerfuffle regarding Apple, their European HQ in Ireland and their tax treatment (or lack of it).

 

The basics of the story are that Ireland charges 12.5% Corporation Tax but did a ‘deal’ with Apple to give it a lower preferential rate to attract their European HQ to Ireland (and all the jobs and prosperity that came with it).

 

All is fair then……well, not in the eyes of the EU. It seems they have a bee in their Euro bonnet about a state sponsored preferential tax rate and have ordered Ireland to apply their normal tax rate and recover a whopping €13 billion in back taxes from Apple.

 

To put the preferential rate in perspective, Apple’s Corporation Tax rate was reduced from 12.5% to 0.005%......or to put that another way……€50 tax for every €1 million of profit. No wonder the European Commission got its knickers in a twist.

 

This is damaging for Ireland as it hits its international reputation and will make it less attractive as a destination for foreign direct investment. As for Apple, that’s a big old chunk of money for it to find and it will hit profits.

 

There is a winner though……the UK.

 

As Theresa Mary May informed us yet again last week, “Brexit means brexit”. Which means the UK should be grinning at the prospect of being able to offer Apple and its likes the same sweetheart deals with there being nothing anyone can do about it. Well, when we leave the EU that is.

 

Maybe, just maybe (say it very quietly) this Brexit thing might just offer a few perks.

 

Interesting.