Saturday 4 November 2017

Apple pays 13 bn euro tax then cancels new bn euro Irish Data Centre

Apple has just agreed the terms for refunding 13 billion euro plus an extra billion in lost interest which it agreed with the EUs competition commissioner Madame Margrethe Vestager and on top of this the Republic of Ireland government will be fined by them for failing to collect the taxes from the company in the first place. On the back of this development comes the news that for some as yet unexplained reason Apple will be cancelling its proposed  new billion euro Data Centre which it had previously been going to build in Athenry just west of the Shannon in the Republic.

Apple is moving the site of the proposed new Irish plant to Denmark where it has built one data centre already.. An Irish government source voiced concerns that the loss of this vital investment was causing doubts amongst other potential big inveators seeking to invest in Ireland post brexit. One senior dail minister was quoted as saying they fear a domino effect if the development does not go ahead. Apple states the tax bill will be paid using "foreign cash" which means cash held somewhere like the off shore British Virgin Islands, therefore not subject to US tax laws.  The money will it says be placed in escrow in 2018 and remain there pending the end of any appeals. If Irish tax has to be paid it would then be creditable against Apples US taxes thus reducing its bills there. Now isnt that neat!

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