It has recently come to light that the multinational technology company 'Apple' owe over 13 billion Euros in taxes back to Ireland, having paid barely any tax to their European companies (0.005% of revenue in 2014). The decision ruled by the European Union will mean firmer tax laws for Apple and hopefully all multinational corporations. We want them to succeed in business across the world - this can still be achieved by paying taxes fairly. Why did it take so long for this so-called 'sweetheart deal' between Ireland and the Apple to be uncovered? And what more can be done to tackle this ever growing crisis of companies full on evading tax payments?
First, some history. When Apple began, Steve Jobs decided Ireland should be the key European base for Apple. One of the reasons for this was the deals Apple struck with the Irish tax office, meaning they paid less tax than the standard corporation payment, making more profit themselves. In Ireland currently, the corporation tax is 12.5%, already considerably lower than most European nations. This deal meant Apple would pay even less. As Apple grew, the profits made would go to Irish offices instead of their US headquarters, because of how much less tax was being paid. Most years Apple would pay less than 1% tax, a tiny fraction of what they make that could easily be lost. Some may judge this as deceitful, and working around the system that others wouldn't have the opportunity to do. Well, under European law, countries are allowed to offer tax deals to companies. As long as all companies get the same tax deal. In Ireland, only Apple were getting these tax breaks, hence a 'sweetheart deal'. Therefore the EU have been able to intervene, because of the laws regarding deals being broken. Another reason why we should have stayed in the EU, for tax protection and exposing those who don't abide by it when necessary. This blog post may give the impression I dislike Apple and all multinationals for abusing the tax system and paying so little. No, I do not. Firstly, not all multinationals abuse the tax system. Secondly, even paying 1% tax of generated profit for the biggest multinationals brings in huge sums of money, maybe even more than ordinary people paying the basic rate over 1 year. And to Apple in particular. I have a lot of respect for Steve Jobs. He was a true entrepreneur, someone who believed in challenging concepts and making things happen. The world is worse off without his presence. The Apple products have been revolutionary in the 21st century, becoming more advanced and changing the face of technology forever. I just wish Apple would use the huge influence they have to promote fair taxes and to pay all when necessary. For the development of their company it's morally, ethically and humanely right.
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