Apple Tax Scandal With Ireland

Apple

The European Commission, found that in 2016, the Irish government illegally helped Apple Inc., keep the tax bill at a fixed low for 20 years.

Ireland refuses to collect $15.3 billion in unpaid taxes from the tech giant, therefore, the European Union is suing.

The EU was accused, by Ireland, of meddling with its ability to govern. The iPhone company, however, is protecting themselves and building a legal defense. Expectantly, the case has escalated and was referred to the European Court of Justice.

EU Competition Commissioner Margrethe Vestager said, on Wednesday, Oct 4, 2017,

More than one year after the Commission adopted a decision, Ireland still has not recovered the money. We of course understand that recovery in certain cases may be more complex than in others, and we are always ready to assist. But [EU Members] need to make sufficient progress to restore competition.

Ireland’s finance ministry said they did not accept the analysis done by the European Commission. Irish officials are working with experts to ensure that the state is in compliance with recovery obligations.

The tech giant’s CEO Tim Cook, in response to the ruling said it was an “obvious targeting of Apple” and the ruling had “no basis of the law.”

After the market closes, on Thursday, Nov. 2, Apple will release, to investors, the fiscal 2017, fourth-quarter earnings results. The high-tech company has a notable stock, at 33 percent.

In the past month, the iPhone company has pulled back 6 percent. When they finally release their earnings, investors will be looking forward to seeing the company grow more. Cook said he expected the revenue for the fourth quarter to be between $49 and $52 billion.

This would be up 4.5 percent to 10.9 percent over last year. In the last few weeks of the fourth fiscal quarter, Apple did have release the new iPhone 8 and 8 Plus. These new releases should help boost sales. The new iPhone 8 and 8 Plus were released on Sept. 22.

Many customers are expected to hold out and purchase the iPhone X. Due to the results and response from customers during the launch weekend, Cook said he was “thrilled.”

Service revenue climbed 22 percent over last year in the third financial quarter. This accounted for 16 percent of Apple’s total revenue. The Mac and the iPad only accounted for only 12 and 11 percent of the third-quarter revenue.

The App store, iTunes, Apple Care, Apple Music, Apple Pay, licensing, and other services are included in the  service segments. They are integral to the company’s long-term potential. Not only are the segments an indicator of strong growth prospects, but it is also a better predictor than other product revenue.

There should be a strong double-digit growth for this segment in the company’s fourth quarter. Apple’s help for its important first fiscal quarter of 2018, is what investors will, without a doubt, turn their attention toward.

Written by Antwon Rogers
Edited by Jeanette Smith

Sources:

CNN: Europe steps up efforts to collect $15 billion from Apple
Fool: Apple, Inc. Earnings: Mark Your Calendar
Arstechnica: Why Apple could be slapped with a massive $15 billion Irish tax bill

Featured and Top Image Courtesy of Phillip Brookes’ Flickr Page – Creative Commons License

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