We recently reported that Apple entered into an agreement with the Italian government to pay a fine of R $ 1.3 billion for a tax fraud investigation. In the article, we said that such an agreement could set a precedent as other countries also feel hurt.
For now the Bloomberg reported that, due to an investigation opened in 2014 by the European Commission, Apple could spend US $ 8 billion (currently about R $ 32.2 billion) instead of the US $ 1.1 billion (~ R $ 4.4 billion) already paid referring to retroactive taxes.
All of this revolves around a “common” practice abroad, in which companies use their subsidiaries in Ireland to avoid paying taxes on revenues generated outside the United States.
The EC says that Apple's corporate maneuver in Ireland makes it able to calculate its profits using more favorable accounting methods (which involve low operating costs, a measure that dramatically decreases what the company pays to the Irish government). Taking into account that Apple generates about 55% of its revenue outside the USA and that the European tax rate (due to the scheme) is about 1.8%, the optimum scenario for Ma. But, if the Commission deciding to impose a tougher accounting standard, the company could pay a 12.5% fee on top of the $ 64.1 billion it made between 2004 and 2012, according to analyst Matt Larson (of Bloomberg Intelligence).
It is worth noting that Apple is not an exception when using this tax maneuver in Ireland. Other companies like Starbucks, Amazon, McDonald’s, etc. they also do this and are going through the same questions.
Tim Cook, Apple's CEO, has said the latest in an interview with journalist Charlie Rose several times that the current tax system is completely out of date and needs to be revised for the digital economy era.
The result of this EC investigation may come out in March this year.