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TAXING APPLES

 Apple, is the most valuable company in the world, exceeding shareholder expectations with each product launch, and out-performing its closest rival Microsoft since 2009.

 However the technology giant has come under huge scrutiny by the European Union's European Commission, which has been policing the tax policies of its member states for several years now, over its tax hurdling tactics.

Apple is a US-based company, with its head office in Cupertino California. However, over 90% of Apple's cash-holdings are held outside the US, particularly in Ireland, where Apple has its alleged European head office for quite some time.

Based in Ireland, Apple should have paid its taxes at Ireland's standard corporation-tax at 12.5%. However according to the recent investigation by the European Commission, Apple has paid an astonishing, and almost comical, 0.005% in taxes.

 Apple is defending its stance, stating it has stood by the tax-laws of Ireland, and hasn't broken any tax laws. Ireland itself is defending Apple's position, stating that Apple hasn't broken any laws, and has indeed paid the correct amount of tax.

However the European Commission has come out alleging that Ireland is providing Apple with special tax-treatment, and Apple is now liable to pay $14.6 billion in back-taxes, with interest.

 Ireland is not interest in claiming this $14.6 billion as part of its tax-take, as it doesn't want to lose Apple as its corporate citizen. Ireland, where Apple employs hundreds of Irish staff, also hosts other companies who have flocked to Ireland in a hurry, to take advantage of Ireland's low corporation-tax of 12.5%.

 Furthermore, the USA's Internal Revenue Service (IRS) also doesn't want Apple to pay this back-tax to the Irish government.

US tax-laws state, that if a multi-national like Apple, pays its taxes in one country (which has a tax-treaty with the USA), it will receive a counter tax-credit against its US-tax bill.

Therefore, if Apple was to pay the $14.6 billion in back-taxes to Ireland, US's IRS will have to offer Apple a tax-credit to off-set against its US taxes, or receive a tax-rebate.

This would create a huge deficit in the US's federal budget, and without a doubt, put the US in further debt.