Components

Part A
Part B

Apple Incorporated: European Commission Fines Apple for Tax Evasion

Edwards, J., Oduro, A., Naik, A., O’Rourke, J. S. (editor)
January 17, 2018
SKU:
BUS-004048
Region: 
Europe, North America
Topic: 
Strategy & General Management, Marketing & Sales, Accounting & Finance
Length: 
13 pages
Keywords: 
tax rates, tax ruling, Brand Management, financial, International, reputation management
Student Price: 
$4.00 (€3.39)
Average rating: 
0

In 1991, Apple mad a tax deal with the Irish government to pay very low tax rates, on the condition that the California-based company carry out its European operations in Ireland. This tax ruling is what the European Union has described as “state aid.” To remedy the situation the EU has ordered Apple to pay Ireland € 13 Billion, plus interest, (equivalent to $14.5 billion) for unpaid taxes between the years 2003-2014. This verdict has left Apple, the U.S., and Ireland displeased.

Learning Outcomes: 
  1. To provide an example of a company embroiled in legal and tax conundrum, as globalization has led to the creation of “stateless/borderless” companies.
  2. To highlight the complexities of conducting business as a multinational corporation.
  3. To encourage discussion on the moral and ethical responsibilities of multinational corporations.
  4. To spur discussion on the role different key stakeholders play in international business dealings.
  5. To provide an example of the legal and international ramifications a company faces when it takes advantage of loopholes in taxation systems.
  6. To encourage an analysis of the needed communication strategies when corporations are faced with international disputes