Apple won't get U.S. tax write-down for €13bn payment to Ireland

Apple won't get U.S. tax write-down for €13bn payment to Ireland

Apple Inc announced plans yesterday to open a new campus as part of a five-year, $30 billion U.S. investment plan and will make about $38 billion in one-time tax payments on its overseas cash, one of the largest corporate spending plans announced since the passage of a tax cut signed by US. "A payment of that size would likely be the largest of its kind ever made", CEO Tim Cook wrote in a public letter.

And it is feared other tech companies may follow Apple's example and move money back to the USA where recent tax changes means corporate taxes in the United States are now lower at 21 percent.

Apple announced on Wednesday that it is to pay the U.S. government $38 billion (€31 billion) in tax relating to money it is repatriating to the US.

Tech giant Apple announced this week that it is planning to build a new corporate campus in the USA which will put an estimated 20,000 Americans to work.

The sum is expected to be the biggest payment under the reforms, which slash the USA corporate tax rate.

Apple said its plans would contribute more than $350bn to the USA economy over the next five years.

President Donald Trump had argued the cuts would make the USA more competitive and spur domestic companies to invest at home.

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Apple will reportedly be focusing on three areas in the future: direct employment by Apple, spending and investment with USA suppliers and manufacturers, and helping to grow the thriving app-store economy. It's something that Apple CEO Tim Cook promised the company would do if it could avoid being taxed at the 35 percent rate that had been in effect under the previous tax law.

Apple now believes to endow more on their people rather than wasting their wealth on others outside the country.

Apple expects to invest over $30 billion in capital expenditures in the United States over the next five years, and hire through existing campuses, in addition to opening the new site.

So far, Apple has announced it will open one new campus this year.

Ireland's delay in extracting some €13 billion in tax from Apple has already raised the ire of European Union competition commissioner Margrethe Vestager. Since, the company didn't disclose the location where the facility will exposed. "They're gonna build plants, they're gonna build a big campus, they're really going to town, so we want to thank Apple".

Apple has previously called for simplification of U.S. tax rules, amid criticism of its large overseas cash holdings and investigation by USA tax authorities. It also is increasing a fund established past year to invest in US manufacturers from $1 billion to $5 billion.

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