Re:A Tax Expert Takes Tim Cook's EU Letter Apart Point by Point
by easytiger on Thursday September 01, 2016 @09:16AM
(#12404970)
> government at the time offered them a super-extra-deal that - just for them - would bring that to 1%
What was that deal? The Irish government claim no deal was made
Re:A Tax Expert Takes Tim Cook's EU Letter Apart Point by Point
by marktheknife on Thursday September 01, 2016 @12:48PM
(#12406834)
It doesn't appear there was one. Apple used a loophole in Irish tax laws that meant Ireland wouldn't tax certain income. It sounds like Ireland apparently acknowledged in a ruling this was a correct reading of the tax laws, which binds Irish tax authorities to not challenge Apple on the issue.
The thing is, if my understanding of the facts is correct, it was a correct reading of the tax law, not some special one done for Apple. So this ruling was not a "deal."
You got that wrong. They knew that the Irish tax rate was 12.5% for all corporations, but the government at the time offered them a super-extra-deal that - just for them - would bring that to 1%. Apple's lawyers were surely aware that this kind of special deals are very debatable in view of EU antitrust law, but took the deal anyway - at their own risk.