http://www.bbc.co.uk/news/world-europe-37242357
Imagine you're running a business perfectly legitimately and suddenly the EU tells you that tax has been underpaid and you suddenly owe a vast sum in 'back-taxes'. They've had 20 years to notice this but didn't think to mention it until now. Apparently, in the EU there is no 'statute of limitations' This is an example of one of the reasons for Brexit. I was pro-Remain, but I understand the frustrations with the EU.
From:
http://taxsummaries.pwc.com/uk/taxsummaries/wwts.nsf/ID/United-Kingdom-I...
The normal time limit for making assessments is four years following the end of the tax year. This is termed a 'discovery' assessment. The time limit for making an assessment on a person in a case involving a loss of income tax brought about 'carelessly' by that person is six years following the end of the tax year. The time limit for making an assessment on a person in a case involving a loss of income tax brought about deliberately by that person is 20 years following the end of the tax year.
As I understand it, the 20 years only applies to intentional non-payment....
http://www.justanswer.com/uk-tax/20vow-statute-limitations-reassessment-...
Normally, a tax return cannot be re-visited by the tax office more than a year after 31 January following the end of the tax year. From 6 April 2009, it is one year following the receipt by the tax office of the tax return itself.
However, under what are called discovery provisions, it is possible for the tax office to re-open tax returns that are twenty years old if they suspect fraud or neglect. For incomplete disclosure which is less serious, the time limit would be 31 January 2008 for 2001/02. The time limit would be extended if the return was submitted late.
It is not a case of simply collecting 'back-taxes' as the EU "explains" and even if it was, why wait 20 years and make a new generation pay it? Typically, they haven't chosen a sum that Apple couldn't afford to pay.
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I don't know much about European politics, but if you are paying 0.005% while most companies are paying 2500 times that (12.5%); there is a serious problem.
Tax laws are so horribly complex and incomprehensible that we're all probably guilty of something without even knowing it. And if the tax authorities decide you've done something wrong, you're guilty until you prove yourself innocent. When you get audited, it's like being hauled up in front of the inquisition, except the inquisitors wear business suits. A tax expert in New Zealand told me that there's enough material in the tax laws and regulations to fill up about 300 bibles. And that's just one small country. I can't imagine what it's like in the EU. It's a recipe for bureaucratic tyranny.
Apple should declare itself a religious organization. The people who buy its products seem to be true believers.
"Apple should declare itself a religious organization."
They already have the worship part covered and their stores already look like high tech churches. All that's left is to apply.
There was a problem now, but not for 20 years? The Irish government broadcast their plans in detail and its low Corporation Tax rate was the main basis for the "Celtic Tiger" strategy...
Quote Wiki: "Celtic Tiger" (Irish: An Tíogar Ceilteach) is a term referring to the economy of the Republic of Ireland from the mid-1990s to the mid-2000s, a period of rapid real economic growth fuelled by foreign direct investment, and a subsequent property bubble which rendered the real economy uncompetitive." Unquote.
The Irish then endured years of austerity during and after the financial crash of 2007/8. Austerity and FDI were how their economy recovered. It didn't suit EU policy to interfere but now they see money they can grab from Apple.
Just my opinion, but possibly the root of the problem is that there are strong socialist movements in many EU countries that are led by people who see all profit as tainted at best and probably some sort of theft from the proletariat.
There was the scandal of how fishing quotas were enforced leading to masses of perfectly good fish being disposed of in the North Sea because of incompetent implementation and a whole list of problems I could list with the EU. USAmericans understandably often seem to have no idea of EU issues. The EU can't even decide where to have a capital. The Parliament moves monthly between Strasbourg and Brussels wasting millions of Euros annually. Example, source:
http://www.express.co.uk/news/politics/655417/Brexit-EU-referendum-parli...
British workers are forking out eye watering sums of money every day on the ridiculous vanity project, which was only ever set up to stroke France's bruised ego.
Despite MEPs repeatedly voting to stop the folly nothing has changed, because ending the madness would require a treaty change agreed by all 28 member states.
Unquote.
A report has just appeared on BBC news:
http://www.bbc.co.uk/news/world-europe-37251084
The Republic of Ireland's cabinet has agreed to appeal against the European Commission's ruling that Ireland granted undue tax benefits of up to €13bn to Apple.
The Irish government previously said it "disagrees profoundly" with the ruling.