Apple May Face Hefty $8 Billion Tax Bill in Europe: Bloomberg
Apple may owe more than $8 billion in back taxes, according to a Bloomberg analysis published today. You may already know that Apple’s tax policies are under the loop of the European Commission, which is expected to issue a ruling soon.
The European Commission launched an investigation back in 2014, claiming that Apple’s arrangement with Ireland allowed it to calculate an unusually low tax bill. Apple generates more than half of its revenue outside the US, and its foreign tax rate is about 1.8%, the Bloomberg analysis has concluded.
This captured the attention of the EU Commission, since the tax rate in Ireland, for example, is 12.5%, not 1.8%. If the commission finds that Apple used tricks to lower its tax rate, it would mean the company may owe taxes at a 12.5% rate on $64.1 billion in profit generated between 2004 and 2012, the analysis reads.
Apple, on the other hand, has voiced its position numerous times: It has paid every tax dollar it owes and is not using tricks to avoid paying taxes.