Apple Inc. has moved another $9bn worth of assets to Ireland, as per AppleInsider. Recently, the Cupertino-based firm was under fire due to a tax scandal in Ireland. Though the decision went against the tech giant, the iPhone maker appears not to think much of it.
Strengthening ties with Ireland
Apple Inc. has planned to take its content stores and iTunes business to more than 100 countries, to be controlled from Holyhill, Ireland. The Silicon Valley firm has handled its business from Luxembourg since 2004. The plans of relocation were first disclosed last month, when the tech giant disclosed that its iTunes business and content stores will be handled at the campus in Holyhill.
The iPhone maker has continued to increase its operations in the country despite several probes from the regulatory authorities of the country. The US firm has around 6,000 employees in Ireland. Apple’s latest move hints at its plan to open another 1,000 jobs for the community.
Apple Inc.’s tax woes
Apple’s Irish tax deals constituted illegal state aid, concluded the European Commission recently. Further, the European Commission ordered Ireland to collect $14.5bn in back taxes from the Silicon Valley firm. The iPhone maker has planned to appeal the decision.
Not only the tech giant, but the Irish government is planning to appeal against the decision as well. The Irish government is worried about losing appeal among the foreign businesses.
Following the case, the Irish government has moved to close some loopholes, but the iPhone maker was able to pay minimal taxes and funnel billions in international revenue. The smartphone maker paid only 0.005% on its European profits in 2014 – just a little fraction of the standard corporate tax rate of Ireland.
What about the US government?
Apple Inc. uses foreign countries like Ireland as a tax haven to produce inexpensive iPhones. In comparison to other countries, the companies have to pay more taxes in the United States. Companies, such as Apple, have been criticized by the US government for having production in different countries.
The US government thinks that such companies do not pay taxes in the country, hence, the US lacks valuable tax money, which could be used to build up the infrastructure. The latest move is anticipated to net Ireland tens of millions of euro in value-added taxes, says AppleInsider.
The US government has a right to censure the tech giant over its actions, but it is well within the right of a firm to conduct its operation in any country it desires to, as long as it is doing its operations according to the law.
On Tuesday, Apple shares closed down 0.07% at $117.47. Year to date, the stock is up over 9% while in the last one-year, it is up almost 6%.