Apple may be forking over $38 billion in repatriation tax payments to the U.S. government as part of an enormous investment in the American economy, but that’s not the only sizable dent that a government will make in the company After a lengthy and contentious debate that has raged on since the summer of 2016, Apple is finally settling its debt in Ireland. The Public Accounts Committee in Ireland will expect to see the collection of $16 billion in taxes from Apple beginning in March, and lasting through September.In 2016, the European Commission ruled that Apple was the beneficiary of illegal state aid in Ireland by way of so-called sweetheart tax deals with the Irish government. In essence, Apple was paying far less than the 12.5 percent corporate tax rate thanks to a deal it struck with the government back in the 1990s. This allowed Apple to record sales in Ireland other than other countries with higher tax rates, saving the company billions in tax dollars. Until now, that is.Although Apple may have hoped that its enormous tax payment in the U.S. to account for overseas cash might reduce the amount it would have to pay in Europe, this has not been the case.
“The Commission’s 2016 state aid decision found that, over many years, tax rulings issued by Ireland had allowed Apple to pay less tax on profits recorded in Ireland than other companies subject to (the) same national taxation laws,” a spokesman for the European Commission said. “This gave Apple an illegal advantage in breach of EU state aid rules, which must now be recovered by Ireland — nothing has changed in that regard.”
Apple’s sizable tax payment will apparently be held in an escrow account — which is to say, one held by a third party. This account ought to be set up by end of March. In a letter to the Public Accounts Committee, Department of Finance Secretary General Derek Moran noted, “Given the scale and the bespoke nature of the establishment of the recovery process at this stage it is not possible to provide a definite date for the completion of the collection of the alleged aid. However, identification of the escrow agent/custodian by the end of March 2018 will then allow for a payment into the escrow fund account, with payments continuing through the course of April, May, and June and up to the end of September 2018.”
Apple may already be cutting back Vision Pro production
The unveiling of the Vision Pro headset was a big moment for Apple, but not one without its fair share of lukewarm responses. And now, the company may be facing another issue: production problems.
According to a report from The Financial Times, Apple is having to dramatically cut the production of the Vision Pro from over one million to less than 400,000. This reportedly comes from two sources close to both Apple and the manufacturer, Luxshare. The China-based company has increasingly become an important supplier to Apple since last year when it took on more of the share of production of iPhones, AirPods, and other Apple devices in the wake of the protests over pandemic lockdowns at Foxconn.
Check your Apple Card right now — you may have a crazy 10% cash-back promo
If you’re an Apple Card user, you may want to check if you have a new offer waiting for you that will net you up to 10% cash back on grocery store purchases. Yes, you read that correctly — 10% cash back.
Apple is quietly boosting Apple Card rewards with this new promotion that seems to only be available to select users through May 31. The timing of this offer follows the launch of the Apple Card Savings account earlier in the month.
I replaced my Apple Watch with a Garmin — and I don’t want to go back
The Apple Watch has been my go-to wearable for years. I began my journey with the Apple Watch Series 1 in 2017, upgraded to the Apple Watch Series 4 shortly after it launched, and then jumped to the Apple Watch Series 7 in 2021. It's long been my smartwatch platform of choice, and I've never had any desire to switch to something else.
At least, that's what I thought before I began using a Garmin smartwatch. I started testing the Garmin Forerunner 265 earlier this year, and I went into it with a pretty clear plan: I'd wear the watch for a couple of weeks, write my review, and move back to the Apple Watch. Fast forward to now, and my Garmin Forerunner 265 review has been published, no further testing is required, and nothing is stopping me from returning to my Apple Watch. But here's the thing — I don't want to. Garmin's watch is so good that I have no desire to put the Apple Watch back on my wrist, and there are a few big reasons why.
The surprising importance of buttons