An APPLE A Day - EU & Ireland (Tax)

 A huge tax recovery to the tune of 13 billion Euros is what the EU official says that  Ireland must recover. Not taken warmly the US cries "Wolf". Unfair it says the retroactive tax against the global giant APPLE Inc.

The fallout is just not tax alone it is also looked at the way the EU treats American businesses. The anomaly is a result of illegal aid granted to Apple for a period of twenty years. This helped the company lower its tax assessment and hence save.

According to the EU members cannot accord benefits to selected companies. The US says that this will undermine the business environment as far as Europe is concerned. The massive retroactive tax could result in the growth potential of the company as well as reduce employment.  

The drastically lower tax rate applicable to Apple subsidiaries in Ireland was to increase jobs in that country. About 1 percent tax is far lower than US's 35% and Ireland's 12.5%. This is an unfair cry the lawmakers in Europe and US as well.

Logically Apple is going to appeal the decision as have Starbucks and Fiat Chrysler. There are many US companies under the tax authorities' scanner hence more are yet to come.

This ruling may be technically right but then the retroactive enforcement would be a big discouragement for investment due to uncertainty whence the country's taxation arrangements could be undermined by the European Commission.  

Post Brexit Outcome & Adjustments Next

What happens next is a major question that the Brits face post-exit from the European Union. Instability and adjustment are the imperative that the economy may face. The pound sterling has already seen a downfall and banks easing regulations for lending subsequently.  This is after the Bank of England has infused about 150 pounds into the National economy.

After many years within the EU Britain decided to leave. This decision was due to immigration policies that the people of the UK did not favor. This was evident post-voting. Apart from economic uncertainty, there was significant political turmoil especially within the Conservative Party amidst those who favored separation. The major opposition, Labor Party experienced some trouble as well.    

Twenty-eight countries in Europe are tied to Article fifty after the departure procedure is confirmed there will be twenty-seven left. The UK will join Norway at the independent window. But only after the formality is commenced i.e letter to the European Council of intent to leave will the uncertainty evaporate. The effect so far has been catastrophic to some extent.            

In wake of Scotland's desire to remain within the EU things fell into the quagmire of total uncertainty since affirmative would be required from the Scottish Parliament albeit blocking cannot prevent the separation.     

The turmoil of exit read further the article on The Atlantic