23-09-2016

The future of the Irish tech economy after Apple’s €13bn tax battle

What does the future hold for Apple’s €13bn tax battle

The news that the European Commission has declared that Apple pay €13bn worth of alleged unpaid taxes to the Irish Government has dominated headline columns over the past couple of weeks. Apple were quick to announce that they believed the ruling would damage Europe’s reputation as a prosperous market for technology businesses whilst many commentators speculated on the future of Ireland as an attractive location for other US businesses. Many tech businesses feel that the retrospective taxes is an unjust measure considering that Ireland initially designed their tax incentives to boost growth within technology in the country. Here at International Tax Search, we envisage more firms deciding to base operations in other locations such as Luxembourg or Switzerland in light of this ruling.

The article states:

Apple’s CEO, Tim Cook, commented on tax reform following the European commission ruling. “Apple has long supported international tax reform with the objectives of simplicity and clarity. We believe these changes should come about through the proper legislative process, in which proposals are discussed among the leaders and citizens of the affected countries. And as with any new laws, they should be applied going forward – not retroactively,” he said.

Commentators also believe the resolution to this is to address the US tax system stating: 

“We must do our part to address the anti-competitive nature of the US tax code and the impact it has had on our domestic job creators both here and abroad,” Hatch said. “Lowering the corporate tax burden and shifting to a territorial regime with base erosion protections will help shift our economic landscape and produce fertile ground for more businesses to invest here at home. It’s an achievable, bipartisan goal that holds great promise, should we get a willing partner in the White House.”

To read this article in full, follow this link: 

What's next for Apple's €13bn tax battle?