How Did Apple Get A 14.5 Billion Dollar Tax

In the past week it was announced that the European Commission completed its investigation and concluded that Apple would need to pay back a 14.5 billion dollar tax to the EU.   While 14.5 billion only represents about 6% of the cash and investments Apple has on hand, the big question is what kind of precedence this might set for the future of big business overseas in light of the upcoming Presidential Election.   So, in simple terms, how did this tax even happen? This all started when Apple struck at tax deal with Ireland to locate their European Headquarters in Ireland in 1991.   Ireland create tax arrangement between now two Irish companies, Apple Sales International and Apple Operation Europe.    The profits that came from European sales for Apple were recorded in Ireland some of which were taxed and the majority of the profits were recorded through something called a “head office”.  In simple terms, this was an offshore company that wasn’t ...

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