Apple Expects Appeal of Irish Tax Ruling to Take 'Several Years' With No Impact on Near-Term Financial ResultsFollowing the European Commission's ruling that Apple received illegal state aid from Ireland, and
must pay $14.5 billion in back taxes to the country, the company has
published a new FAQ that addresses potential concerns investors may have about the decision and the effect on its bottom line.
<img src="
" alt="Apple-EU" width="462" height="186" class="aligncenter size-full wp-image-479173" />
Apple started out by confirming the decision is not final and that it plans to appeal. The company is
"confident" the ruling "will be overturned" by courts in the European Union, but it notes the process is "likely to take several years." In the meantime, Apple does not expect any near-term impact on its financial results.
<strong>How does this decision impact Apple’s near-term financial results?
Will you take a tax charge? Does this alter your previous guidance?</strong>
We do not expect any near-term impact on our financial results nor a restatement of previous results from this decision. We have previously accrued U.S. taxes related to the income in question. The tax rate guidance for Apple’s fourth fiscal quarter that we provided on July 26, 2016 does not change as a result of this decision.
Apple added that it does not currently expect the decision to have an impact on its tax rate or cash balance going forward, but the company anticipates it will place an unspecified amount of cash in an escrow account. Apple expects the amount will be reported as restricted cash on its balance sheet.
The European Commission's ruling followed a
three-year inquiry into Apple's tax arrangements in Ireland, where it paid between 0.005% and 1% in taxes from 2003 through 2014, compared to the country's headline 12.5% corporate tax rate. Apple insists it "
follows the law and pays all of the taxes" it owes.
<small>Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our
Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.</small>
<div class="linkback">Tags:
AAPL,
corporate tax,
European Commission,
Europe,
Ireland </div>
Discuss this article in our forums
<div class="feedflare">
<img src="[url]http://feeds.feedburner.com/~ff/MacRumors-Front?d=yIl2AUoC8zA" border="0"></img>[/url]
<img src="[url]http://feeds.feedburner.com/~ff/MacRumors-Front?d=6W8y8wAjSf4" border="0"></img>[/url]
<img src="[url]http://feeds.feedburner.com/~ff/MacRumors-Front?d=qj6IDK7rITs" border="0"></img>[/url]
</div><img src="
http://feeds.feedburner.com/~r/MacRumors-Front/~4/FfIXj3r90kg" height="1" width="1" alt=""/>
Source:
Apple Expects Appeal of Irish Tax Ruling to Take 'Several Years' With No Impact on Near-Term Financial Results
