Apple set to fight over $14B in back taxes owed
Disney CEO steps down from Apple’s Board of Directors
Disney’s CEO Bob Iger is leaving Apple’s Board of Directors, some say because Disney’s streaming service will compete directly with Apple TV+.
Apple may be on the verge of a hefty payment for back taxes owed to the European Commission as the tech giant could face its day of reckoning this week.
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At issue is the $14 billion in taxes owed by Apple to the European Union (EU). Reports said that a deal between Apple and the Irish government allowed for a tax rate of just 1 percent in 2003 and at one point in 2014, just .005 percent, far below the nation’s normal rate. Ireland’s corporate tax rate is 12.5 percent, one of the lowest in the EU.
EU member nations are not allowed to offer incentives and tax rates that are not offered in other nations.
Regulators from the commission will meet with the Irish government and Apple officials on Tuesday and Wednesday of this week over the tax row. All findings will be published on Sept. 24.
The charge is that Apple has paid just a fraction of what they are obligated to pay, basically diverting its European profits through Ireland and using a special deal with the government to circumnavigate the billions they allegedly owe. If the finding holds and the firm owes over $14 billion, Apple’s payment would far eclipse the largest back tax payment in Ireland’s history, the number 40 times greater than the previous record holder.
It is not an uncommon practice for corporations to funnel money through certain countries with friendly tax structures to evade larger payments.
On Friday, Disney’s CEO Bob Iger stepped down from Apple’s board of directors at the same time that Apple TV’s launch date was announced. Iger told FOX Business' Deirdre Bolton in May that he recused himself from conversations on the Apple board that might conflict with his company’s vision and future such as “Apple Television or Apple Plus or other movies discussed.”
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