Copyright © 2016
Tag - Tax
A new advisor to Russian President Vladimir Putin wants to increase taxes stemming from US companies trading in the country, in an attempt to try and make it easier for local competitors to take on their American counterparts. German Klimenko, the country's Internet czar, is going after Apple, Google, and Microsoft just six weeks after taking the role, with the taxation plan expected to help raise revenue for the government at the same time as making services such as Yandex and Mail.ru more attractive to citizens.
Following a meeting by Apple CEO Tim Cook with the head of the antitrust investigation against Ireland on behalf of the European Commission, Apple's CFO has told London's Financial Times that should Ireland be found guilty of giving companies like Apple "special state aid," Apple should owe nothing in back taxes. The crux of remarks by Luca Maestri is that Apple did not receive any special deal from Ireland, but if Ireland illegally lowered its tax rate to benefit corporations, it is the state -- and not the companies that benefitted from the lower rate -- that should pay any penalties.
Apple has received some unexpected support from the outspoken Mayor of London, concerning its European tax investigation. Mayor Boris Johnson wrote in defense of Apple's attempts to pay as little tax as possible on its European earnings, suggesting it is only following the rules of the tax systems across the continent to its advantage, and that the European Commission shouldn't be trying to fix something that the Irish government intended to happen.
Apple may end up paying out billions to regulators in Europe, according to analysts looking at a regulatory investigation into the company's tax affairs. Depending on how much it decides to punish Apple, the European Commission's investigation into tax avoidance practices allegedly used by Apple, which involved ferrying taxable funds through various subsidiaries to minimize payable tax, could end up charging over $8 billion in owed taxes.
If you've ever sworn that you never want to go through filling out tax forms ever again, you should probably have spent that time swearing a little bit at QuickBooks as you try to work out which version is right for you. If you're self-employed then there's a good chance that the answer is QuickBooks Online 4.3.4 for iOS and QuickBooks 2.3.1 for OS X.
Apple is ending an investigation into its tax affairs by Italian authorities, by paying a settlement of €318 million ($347.5 million) to the country, far less than it could have ended up paying. The payment effectively ends Italy's probe into Apple's local subsidiary's finances, with authorities suspecting Apple of tax fraud by failing to comply with local tax laws for a five-year period ending in 2013.
Users of Netflix, Hulu Plus, and other streaming services in Chicago can expect to pay a higher subscription rate in the future, after the city changed laws. The "cloud tax" is effectively an extension of existing laws to add a nine-percent tax on streaming services and some other online platforms, which in at least one case will see the end price of services paid for by consumers in the city go up in order to compensate for the extra cost of business.
Amazon is altering its tax affairs in Europe, following pressure from governments and regulatory bodies over the way it and other tech companies attempt to shrink their tax bills. The retailer is starting to run sales it makes in the United Kingdom within the country itself, instead of funneling them through Luxembourg to minimize the amount of tax it pays, a change that is expected to bring in millions in corporation tax to the UK treasury.
Europe's anti-trust agency, the European Commission (EC) will miss its own internal deadline for a ruling on the tax probe it has underway against Apple, Starbucks, and Amazon. Citing the need for justice and accuracy in its ruling, EC chief Margrethe Vestager said that "we will not sacrifice the rule of law or the quality of our work to speed up the process."
Apple has filed its latest quarterly report with the US government, and in so doing noted that an ongoing European Commission investigation of Ireland and its government's corporate tax rate could "require Ireland to recover from the company past taxes covering a period of up to 10 years reflective of the disallowed state aid," calling that potential amount "material." While difficult to gauge, the eventual impact could be in the billions for Apple.