The obligation from the European Commission to Apple to pay 13,000 million euros to the Government of Ireland She not only starred in the current technology around the world, but it also has been placed on all the covers of the Media General. Everyone has been talking about it.
And as often happens whenever the subject of taxes paying Apple in each country comes to the fore, many focus on whether the system that uses the Cupertino company (and other large technology like Google or Facebook) is legal or not. There are several things to point out, but the truth is that Apple are not breaking the law with the form which has paid your taxes.
Not “how” but “how” and “where”
The first thing to be clear is that this battle is not for Apple to pay taxes: already paying. Around the world, as explains Eduardo Archanco, it has paid more than 80,000 million dollars in taxes between 2003 and 2015. The problem here is who receives these taxes, or in other words: how are partitioned.
And laws dictate a system that Apple, like the rest of companies, they try to squeeze as much as they can but always within the law: Apple has the European headquarters in Ireland, a country where taxes are more gifted to her, and from there you can use subsidiaries in each European country to collect revenues in all markets.
Apple Marketing Iberia and Apple Retail Spain are subsidiaries in Spain, which have minimum benefits in Spain (in the same way that other subsidiaries in other European countries) while the bulk of the revenue goes to Irish accounting sheets. This is of course questionable ethics and without a doubt opens a strong debate, but I repeat: Apple is not doing anything illegal here. Apple, Google, or Facebook or any other technological multinational that wants to pay the minimum amount of tax.
I agree with @tim_cook that you can ‘ t change laws retroactively to be convenient. Going forward, rewrite regulations
— Om Malik (@om) August 30, 2016
Now what remains to be seen is if the battle legal now beginning between Apple and the European Commission, It expected long, ends up changing this. We will witness confrontations between Ireland and Apple on one side, who don’t want to change their agreements, and the European Commission which wants to the Cupertino company to redirect much of its benefits.
But in the end, what matters, is that the established system allows to make everything that has made Apple when revenue in the old continent. And as Om Malik, the best if you want to change this is change the whole system.