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Apple could owe billions more in tax due to its restructured tax arrangements since 2015 - Pearse Doherty TD

25 January, 2018 - by Pearse Doherty TD


Sinn Féin's spokesperson on Finance, Pearse Doherty TD, has urged further investigation into Apple’s restructured tax arrangements since 2015 in light of a recent blog by Seamus Coffey which implies that the final bill may be billions more than the €13bn plus interest figure.

Deputy Doherty said:

“I have been raising serious concerns regarding Apples 2015 tax arrangements since last year and Seamus Coffey’s recent blog really adds weight to concerns that Apple could be liable to billions more in State Aid.

"Seamus Coffey outlines how the Commission might determine that billions of Intellectual Property write downs by Apple since 2015, would not be allowed per S291a(7)(c) of Irish tax legislation,  if it is determined that one of the main purposes of these write downs was to avoid tax.

"There is a distinct possibility that the Commission could come to this conclusion in light of Apple’s recent statement, whereby it stated 'the changes Apple made to its corporate structure in 2015 were specially designed to preserve its tax payments to the United States, not to reduce its taxes anywhere else'.

"Seamus Coffey also outlines that potentially 291a(7)(c) would not be applicable if Apple had paid Capital Gains Tax (CGT) related to the transfer, but that didn’t happen.  

"There is a solid argument that this CGT should be due to the State, given that IP left the US when the cost-sharing agreement was put in 1980 and the Irish branches had the use of the IP up to 2014.

"Either way billions of either Corporation tax or Capital Gains Tax could be due to the State due to Apple’s post 2014 tax arrangements. I will be raising this issue directly with the Minister for Finance next week at Minister’s Questions.

"In terms of the write downs not being allowable as per Seamus Coffey’s analysis: ‘what is at stake when the original state aid decision is finally decided by the courts may not just be the €13 billion plus interest for the period from 2004 to 2014 but also €2.5 billion to €3 billion for every year since’.”  

Seamus Coffey blog link:

http://economic-incentives.blogspot.ie/2018/01/what-apple-did-next.html

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