taxes

How to get a tax break on Apple products

Christian Zibreg ∙ Updated August 4, 2016

Apple is reminding customers of the upcoming sales tax free days in the United States. Specifically, as part of the back-to-school sales tax holidays, the company is reminding would-be shoppers of a not-to-be-missed opportunity to buy select Macs, iOS devices, accessories, educational software and services at a significant discount.

The Online Apple Store is now advertising a tax break on Macs and iOS devices purchased both at its brick-and-mortar outlets and online.

Even better, tax-free purchases can be combined with Apple's own 2014 Back To School promotion to net yourself up to $100 in Apple Store gift cards for Macs, iPhones and iPads...

Tim Cook visits Irish government to talk tax evasion

Christian Zibreg ∙ January 31, 2014

Apple CEO Tim Cook flew to Ireland today to meet with the country's government officials and tour the company's corporate office. Although the meeting agenda was shrouded in secrecy, media reported Cook and the head of government discussed tax loopholes and a change in the Irish laws that should prevent firms like Apple and Google to avoid declaring tax residency in either the U.S. or Ireland.

A loophole in Ireland's corporate tax laws has enabled many of the world's top corporations to operate as virtually stateless firms, ungoverned by any nation’s taxing authority...

Apple being investigated for $1.3 billion Italian tax fraud

Cody Lee ∙ November 13, 2013

Apple is in hot water over international taxes again, this time it's in Italy. According to Reuters, the Cupertino company is currently under investigation by Italian authorities for alleged tax fraud.

The Italian government believes Apple may have hidden more than 1 billion euros (or $1.3 billion US) from the country's tax authority during 2010 and 2011, and Milan prosecutors want answers...

Ireland to alter tax laws in wake of Apple uproar

Ed Sutherland ∙ October 16, 2013

Ireland's Finance Minister announced plans to close a loop-hole in the country's corporate tax laws, eliminating the ability for companies such as Apple to operate as virtually 'stateless' firms ungoverned by any nation's taxing authority. The change in the Irish laws means the iPhone maker cannot avoid declaring tax residency in either the U.S. or Ireland.

Earlier this year, Apple's ability to funnel payments through a unit in Ireland to avoid paying taxes brought U.S. scrutiny by the Senate and testimony by Apple CEO Tim Cook...

Apple off the hook as SEC ends tax probe

Ed Sutherland ∙ October 7, 2013

After spending the summer in the hot seat over its tax strategy, Apple has received the all-clear sign from federal regulators. In a September letter, Securities and Exchange Commission investigators who'd been looking into Apple's finances gave the iPhone maker some good news, saying the agency plans to take no action at this time.

In May, Apple CEO Tim Cook testified before the Senate Permanent Subcommittee on Investigations, telling members his company pays all taxes it owes. Like the subcommittee, the SEC apparently found no wrongdoing on Apple's part...

Apple promotes upcoming no-tax holidays for iDevice shoppers

Ed Sutherland ∙ Updated August 4, 2016

Are you a U.S. resident looking for a reason to buy an Apple device, but hate that chunk of change taxes consume? Apple is joining other retailers promoting a "tax-holiday" period aimed at goosing back-to-school sales. Some ten states are now participating in the annual event, usually due August 2-4.

Apple's website now informs consumers it will remove sales tax from items purchased, the timeframe depending on in which state buyers live...

Germany wants EU to ban ‘patent box’ tax breaks

Ed Sutherland ∙ Updated January 26, 2016

It's a common practice now under fire from Germany's finance chief: giving corporations tax breaks to locate and develop their patents - and hopefully hire local workers. In a Europe struggling with widespread economic troubles, the tactic known as the 'patent box' should stop, Germany asked a gathering of European Union finance ministers.

At the heart of the dispute between Germany and other European countries are reports Apple and others multinationals used local tax laws to save money...

Ireland opposes grilling Apple and Google execs over tax shelters

Ed Sutherland ∙ July 5, 2013

Apple executives, and other tech titans under fire for their tax avoidance practices, can sigh with relief. An Irish committee voted earlier against asking Apple CEO Tim Cook and others about how they used the Irish tax laws to limit what they owe the IRS. Instead, a finance committee of the parliament will put European finance officials on the hot seat.

An investigation by a U.S. Senate subcommittee found Apple funneled a large portion of its income through an Irish business unit, which charged a very low tax rate. As part of that investigation, Cook was called to answer Senator's questions...

Apple apparently paid no UK corporate taxes on $103 million profit in 2012

Ed Sutherland ∙ July 1, 2013

Apple's clever accounting practices are again under scrutiny after the iPhone maker paid no UK corporate taxes in 2012, despite three units of the California firm making more than $100 million, according to a British financial newspaper Monday. According to the Financial Times, Apple used tax-deductible employee share awards (essentially stock dividends) to "wipe out the corporate tax liabilities of the UK subsidiaries" during 2012 up to September...

Apple fails to pay $6.5M in taxes on iPad sales in France

Christian Zibreg ∙ Updated June 3, 2017

As if Apple's recent woes with the United States government over offshore tax havens weren't enough, the French association SACEM (they control royalties) has now discovered that even though Apple did charge iPad buyers a 1 percent tax for cultural works, it's failed to pass the money to SACEM.

The inexplicable slip up could cost Apple dearly, especially in light of the recent debate over how U.S. corporations creatively pay little to no taxes on the revenue earned from overseas sales...

EU suggest clamping down on tax havens

Ed Sutherland ∙ May 28, 2013

European nations must stop offering incentives aimed at attracting companies seeking a haven from the U.S. government's 35 percent tax on repatriated money. The European Union's Tax Commissioner Algirdas Semeta Tuesday called on EU member nations to halt "specific incentives" aimed at attracting international corporations such as Apple, Google, Microsoft, Coca Cola and many others.

Semeta's comments in Brussels follows a week of high-profile discussion of ways Apple and other tech giants filter income through EU nations such as Ireland to avoid paying heftier taxes back home...

Former US Senator: blame Congress for tax avoidance, not Apple

Christian Zibreg ∙ Updated April 18, 2016

Carl Levin, the chairman of the Senate Permanent Subcommittee on Investigations, ahead of a high-profile congressional hearing accused Apple of seeking “the Holy Grail of tax avoidance” by creating “offshore entities holding tens of billions of dollars, while claiming to be tax resident nowhere.”

Needless to say, click-hungry media came all guns blazing in support for the government's stance. But not so fast, cautions former U.S. Senator John E. Sununu (Republican, New Hampshire), who points the finger at the United States government over instituting tax laws that discourage corporations like Apple from repatriating its $40 billion in overseas cash...