News Time For Apple To Raise Prices!

Discussion in 'The Howard Stern Show' started by HS Cult Leader, Jan 15, 2016.

  1. HS Cult Leader

    HS Cult Leader Elite Member Gold

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    Apple May Be on Hook for $8 Billion in Taxes in Europe Probe

    Adam Satariano

    January 15, 2016 — 3:15 AM EST Updated on January 15, 2016 — 7:11 PM EST

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    European Antitrust Officials Probe Apple’s Tax Dealings

    Apple Inc. may be facing a hefty tax bill in Europe.

    QuickTake Profit Shifting

    The world’s largest company could owe more than $8 billion in back taxes as a result of a European Commission investigation into its tax policies, according to an analysis by Matt Larson of Bloomberg Intelligence. Apple, which has said it will appeal an adverse ruling, is being scrutinized by regulators who have accused the iPhone maker of using subsidiaries in Ireland to avoid paying taxes on revenue generated outside the U.S.

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    Apple EU Timeline
    The probe dates back to 2014 and a decision could come as soon as March.



    The European Commission contends that Apple’s corporate arrangement in Ireland allows it to calculate profits using more favorable accounting methods. Apple calculates its tax bill using low operating costs, a move that dramatically decreases what the company pays to the Irish government. While Apple generates about 55 percent of its revenue outside the U.S., its foreign tax rate is about 1.8 percent. If the Commission decides to enforce a tougher accounting standard, Apple may owe taxes at a 12.5 percent rate, on $64.1 billion in profit generated from 2004 to 2012, according to Larson, a litigation analyst for Bloomberg Intelligence.

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    Apple Reasons
    Tax Bills
    Apple is perhaps the highest-profile case of U.S. companies facing scrutiny from officials in Europe. Starbucks Corp., Amazon.com Inc. and McDonalds Corp. also have had its tax policies questioned.

    Several senators came to the defense of U.S. companies on Friday. In a letter to U.S. Treasury Secretary Jack Lew, bipartisan members of the Senate Finance Committee asked the administration to make sure that European regulators won’t impose retroactive penalties like those that would hit Apple. The senators said the companies may be facing "discriminatory taxation" and that the U.S. government should consider retaliatory measures if European tax authorities follow through with their actions against Apple and others.

    "Predictable tax policy fosters a fair and stable environment for business and investment," the senators wrote in a letter to Lew. "Going back in time to penalize taxpayers under a new law, or a new interpretation of an existing law without notice, runs counter to that objective."

    In October, Apple listed scrutiny of its taxes as a risk factor to investors. In addition to European regulators, the U.S. Internal Revenue Service has also examined the company’s tax returns, Apple said. Were the tax rates to change, Apple’s "financial condition, operating results and cash flows could be adversely affected," the company said in its financial statement for fiscal 2015.

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    Apple Tax Calculation
    Apple Chief Executive Officer Tim Cook has denied that the company uses tricks to avoid paying taxes. In a recent interview on CBS Corp.’s "60 Minutes," he called the criticism the company has faced from U.S. lawmakers "political crap." He said the tax system is outdated and needs to be updated for a digital economy.

    Kristin Huguet, a spokeswoman for Apple, declined to comment. Ricardo Cardoso, a European Commission spokesman, declined to comment.
     
  2. BrerJimmy

    BrerJimmy Well-Known Member

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    This just in, Apple has bought Europe.
     
  3. suckemnuckledus

    suckemnuckledus Well-Known Member

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    Ralph will address this on Geektime! No Worries...
     
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  4. The Booey

    The Booey Well-Known Member

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    So raise the prices. It's not like the iSheep have ever objected to getting fleeced.
     
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  5. EndOfLine

    EndOfLine PLATINUM SPONSOR VIP

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    Apple has over 200B in cash. 200 with a B. I'm pretty sure they'll be fine.
     
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  6. Tickle Shits

    Tickle Shits very angry indeed Gold

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    They're just fine. They have about 200,000,000,000 in the bank
     
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  7. wigtropolis

    wigtropolis Well-Known Member

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    Give them a billion iPods
    That will shut them up
     
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  8. BrerJimmy

    BrerJimmy Well-Known Member

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    If every share holder pays $4.30...
     
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  9. chapped

    chapped Well-Known Member

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    sounds like its time to do Beth calender's
     
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  10. Head Censor

    Head Censor Turgid Member VIP

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    I see two possibilities here:

    1) Apple played fast and loose with the EU accounting and taxation rules and legitimately owes $8B in back taxes, or

    2) Some highly placed EU government bookkeeping drone found a way to extract an extra $8B from Apple by cleverly reinterpreting some preexisting tax law codes.

    :dontknow:
     
    Tracy likes this.
  11. YinzerMasshole

    YinzerMasshole VIP Extreme Gold

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    Just grease the right palms in Brussels and all problems go bye-bye. Microsoft learned this years ago.