Apple, To Pay Up $14,5 Billion Dollars in Taxes to the Irish Government

Economy Nilgun Salim
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JP Morgan announced last week that the worst case scenario for Apple would be to pay up to $14.5 billion in taxes plus interest to the Irish government.

The investigation was initiated in 2014 in order to clarify if the agreement between the American company and the Irish government followed the European legislation.

The European Commission believes that Apple acquired significant financial benefits with the main purpose of establishing a headquarter in Ireland.

Both Apple and Irish International Financial Services denied the accusations.

The U.S. Department of Treasury defends the smartphone producer.

They published a white paper last week that said the EU executive’s tax investigations departed from international taxation norms and would have an outsized impact on all the American companies.

Apple has some serious reasons to fear.

Big names such as Starbucks or Fiat suffered harsh consequences of their uninspired financial choices in countries such as Belgium, Luxembourg, and Holland.

Amazon.com and popular fast-food chain McDonald’s face probes over taxes in Luxembourg, Starbucks paid up more than $333 million dollars to the Dutch state.

Things are not looking good for the American high-tech giant, who paid up $320 million dollars to the Italian government after they were accused of tax evasion.

Beside their U.S subsidiaries, Apple owns more than $215 billion dollars in cash. If they would ever consider moving the impressive amount in U.S, more than $80 billion will go to the IRS.

For Apple, whose earnings of $18 billion last year were the biggest ever reported by a corporation, finding other several billion dollars should not represent a major concern.