What is the background that Apple was ordered to pay the additional tax of 1.6 trillion yen with tax incentives in Ireland?

ByJinx!

In August 2016, the EUI ordered Apple to pay an additional tax of EUR 13 billion (approximately 1.6 trillion yen) to Ireland. This included the Irish government, andApple appealed together, It has become a situation that conflicts with the EU from a straight line. Originally imposed surcharge tax is caused by Ireland's "unfair" tax preferential treatment to Apple. What uncovered this fact is that the research team formed by the European Commission "Max Force"was.

The Inside Story of Apple's $ 14 Billion Tax Bill - Bloomberg
https://www.bloomberg.com/news/articles/2016-12-16/the-inside-story-of-apple-s-14-billion-tax-bill


◆ Before 2013
It is from around the year 2014 that Apple began to make noise as a table showing that it is in "improper relationship" that incentives from the Irish government are received. However, according to the EU executive body, the European Commission, the relationship is older.

The method used is "to indicate a tax judgment that allows Apple's profit in the EU region to be allocated to the" head office "that is not subject to taxation at the time of the Irish tax law at the time", and judgment was made between 1991 and 2007 It is done in the year. Since this overseas profit is not subject to taxation in the United States, Apple realized a substantial "tax saving".

Apple's tax avoidance problem, highlighting the gap between law and the economy - WSJ
http://jp.wsj.com/articles/SB11426422161025524901704582301013645671358

◆ 2013: "Max Force" formed
The research team "Maxforce" challenged this unnatural situation. The name is a German lawyer chosen as the leader of the investigation team from the European CommissionMax LienemeyerIt derives from Mr..

In the US, the Senate Permanent Survey Subcommittee "made Apple in IrelandStatelessThe investigation team has heard that it is holding down the effective tax rate to less than 2% by pouring billions of dollar profits into the affiliated company (head office mentioned above) ".

Representative Republicans who fought with Mr. Barack Obama in the 2008 presidential election showed their presence in the hearingJohn McCainSenator. McCain, who was the flagship of Apple's pursuit, claimed that despite Apple's 95% research and development in the US, he is sending most of the profits out of the country. Ireland is doing a "generous" tax policy for attracting foreign companies, and Apple pays taxes of only 1,000 for income, which is estimated to amount to $ 22 billion (about 2.5 trillion yen) Pointed out that it is less than ten thousand dollars (about 1.2 billion yen).

Senator John McCain: Apple Is Cheating The U.S.A. In Taxes | Cult of Mac
http://www.cultofmac.com/228111/senator-john-mccain-apple-is-cheating-the-u-s-a-in-taxes/


By the way, Tim Cook told the claim that "Apple is avoiding paying taxes" such that "Apple pays taxes more than any company" and want to return overseas profits to the domestic market Although I am thinking, I am fighting that "40% tax will be collected at that time as" obsolete ".

Apple commented that Tim Cook, CEO of Tim Cook, is ridiculous about the problematic tax issue - GIGAZINE

ByMike Deerkoski

After hearing at the Senate, the investigation team requested documents from the Irish tax authorities and the authorities responded. During this period, the Ministry of Finance of Ireland explained to the Finance Minister Michael Noonan that the EU survey was not particularly affected. However, a few months later, Minister Noonan announced a law amendment on a stateless holding company that had become a "loophole."

◆ June 2014: Governor Jerry Brown of California states "Apple is no longer an Irish company"
During the period from 2014 to 2015 the investigation of the team will be advanced more finely, but in the meantime, in June 2014 an event was held in San Francisco by Irish Americans and Irish entrepreneurs.

Top US politician launches assault on Irish tax laws - Independent.ie
http://www.independent.ie/business/irish/top-us-politician-launches-assault-on-irish-tax-laws-30337467.html


Governor Jerry Brown of California State and Prime Minister of the Republic of Ireland Ender Kenny attended the event. Prime Minister Kenny gave a speech about the relationship between Ireland and California, but Brown, who later went on to say, skipped a joke lightly, saying that California proved to be an "independent country if taxing similar to that of Ireland, "I thought that Apple is a company in California but as far as tax returns are concerned it is really an Irish company and we call it" creative accounting " It brought a blow. According to Bloomberg, Kenny said Prime Minister Kenny "did not have a dwelling".

◆ January 2016: Tim Cook and CEOMargrette · VesteaThe European Commission met
In 2016, Cook held a meeting with Margrette Vestea, a member of the European Commission's Competition Policy Committee, the boss of the research team. Mr. Vestea is a person who arrived on November 1, 2014, the former position is Danish economic and interior minister. In October 2012, I gained experience visiting Japan at the International Monetary Fund · World Bank Annual Meeting and in May 2013We have talks with Mr. Masashi Matsuyama, Deputy Vice Minister for Foreign Affairs, who visited Denmark.

Mr. Vestea in economic and interior ministerial era is "fair and tenacious" as a reputation and cuts unemployment insurance under severe financial conditions which has fallen to the deficit since 2008 due to the financial crisis. The European Commission also has a good deal of skill and strict pursuit is being pursued that 'dominance' by companies such as Google and Amazon hinders innovation and disadvantages to consumers.

Mr. Vestea has the idea of ​​Apple's "tax saving" as well as "the decision of the EU is based on" fairness ", and in a meeting with CEO Cook," someone has to tax you " He told me that.

◆ August 30, 2016: The EU orders Apple to pay up to EUR 13 billion for additional taxation
On 30 th August 2016, the European Commission adopted an unfair tax preferential treatment against Apple for Ireland and brought in "profit" of $ 13 billion (about 1.6 trillion yen) between 2003 and 2014 Announced. I ordered this unpaid amount to be subject to additional taxation after adding interest.

European Commission - PRESS RELEASES - Press release - State aid: Ireland gave illegal tax benefits to Apple worth up to € 13 billion
http://europa.eu/rapid/press-release_IP-16-2923_en.htm


EU, the possibility of billions of euros in Apple's surcharge Tax avoidance - BBC News
http://www.bbc.com/japanese/37217873

The reason that the period is "from 2003" is because retroactiveness is said to be 10 years from the time of first submitting the request for information provision, because the submission was 2013. Also, the end of the period is "until 2014", as mentioned above, the Irish government and Apple have responded to the fact that the investigation team started to move, and the tax judgment made by the Irish government in 2007 applies in 2015 It is because it is not being used.

◆ December 2016: Irish government and Apple appealed
When the decision of the European Commission came out, the Irish government and Apple had announced that they were obliged to appeal. And on December 18, 2016, the Irish government first appealed to the European Union Court of Justice and General Court. Ireland's Finance Minister Michael Noonan commented that "Ireland strictly observes the tax law".

Ireland publishes legal arguments in Apple State Aid case | An Roinn Airgeadais, Department of Finance
http://www.finance.gov.ie/news-centre/press-releases/ireland-publishes-legal-arguments-apple-state-aid-case


Following this, Apple also appealed on December 19, 2016. Lawyers on the Apple side said that because of Reuters' interview, Apple was targeted because it was a convenient target that was easily picked up in the news.

Apple appeals against EU tax ruling, Brussels says no cause for low tax bill | Reuters
http://www.reuters.com/article/us-eu-apple-taxavoidance-idUSKBN148007

I do not know how much time it will take, but what kind of judgment the European Union Justice Court will make and the result is noteworthy.