HOW DO YOU PAY 14 BILLIN TAX FROM 200 BILLION IN CASH?
Easy. You write a check. However lets look at what is real versus what you read in the news. So. Consider. Apple has a tax legal frame work in place for years. Other firms mirror this frame work all over the world. Now enters Brussels in the EU agreements. The EU via Brussels its capitol issues a first legal ruling that Ireland a sovereign nation lacks the power – authority – and legal right – to make a tax agreement with a large employer like Apple any old way it may deem appropriate under its sovereign nation and laws of its land. The EU votes the Ireland must collect back taxes – not forward taxes – of 14 billion when Apple over more than ten years relied legally upon agreements of law in executing its business under those laws.
So apple will appeal. But I always ask you to follow the money. To think it through. So think it through.
Ireland is part of the UNITED KINGDOM.
The United Kingdom has voted to LEAVE THE EU.
So the appeal IN the EU will take five years or longer. For sure. Years.
Ireland will BE OUT OF THE EU by then. OUT of the EU by THEN.
Not under Brussels.
OUT OUT OUT.
How will the EU enforce anything if the nation of Ireland REFUSED to re-assess taxes on Apple – now free of the EU and thumbs their nose at the EU ruling including any appeal final verdict.
So Apple has:
- Legal play one – they win on appeal under the law. No tax.
- Legal play two – Ireland refuses to collect under the law. No tax.
- Legal play three – Apple Leaves Ireland and refused to pay under the law. No tax.
How does Ireland ever collect 14 billion in taxes – which Ireland doesn’t want anyway and has said so – as it must honor its agreement to Apple to keep all its other agreements with scores of other large investor employers in their nation – or the EU would force Ireland into bankruptcy. So Apple will never pay and Ireleand will never welch on its agreement ( Welch is Scottish is it not though ? ) .
Now consider – the EU just served its first dish of PAY BACK to the Brits’ for voting to leave the EU. Brussels kicked the UK in the teeth through IRELAND noting Brussels has the say – and be prepared this is a first dose of what to anticipate when dealing with EU exit. Oh really? The Britts buy more from the EU than they sell. So What is Brussels going to do – cut off its members pay checks to spite its power base ( which is an inner circle of detached ego’s increasingly out of step with its membership on everything )? The EU is dead and Brussels is a dying dinosour in a tar pit thrashng all around and no one has told the poor thing – hey Brussels – you are DEAD ON ARRIVAL. Your dead chappies – totally on life support and you are economically – dead. So flail away thrash all your laws and rulings about Apple is laughing at you all the way to the bank – as they sell out of EU’s before the value goes into the Thames.
What is going to happen?
Well – the EU states considering following the Brits out of the EU agreements – which is all of them really – are going to see Brussels as increasingly regulate their sovereign nations – and they will not agree to allow that trend to continue. The next nation will leave next year. All of them soon after. We wrote you since 2013 the EU as a economic experiment is a failed financial model – an economic house burning to the ground on bad loans and bad debts exceeding 100 TRILLION DOLLARS from its dominating membership – and France and Germany can not pay those debts off nor will they intend to.
The END is handwriting on the wall – the EU IS A DEAD ECONOMY WALKING. The EU is worthless and is only alive by life support. As the member nations opt to leave following the smart move with the BRIT’s – noting nothing bad has happened in Great Britain – nothing at all – no run on the sterling just the opposite – all the pundits were wrong save for us – we predicted the Brit group would be stronger and better for leaving removing the never ending drain the EU causes without the never ending invasion taking place to their culture eradication.
We just can’t see how Germany and France can tolerate much more Brussel Sprouts related to to their never ending costly regulations – power consolidation – and centralized economic traps that represent an EU building burning to the ground in a financial fire storm without fire escapes of any kind. It is every nation for themselves and the first to leave are the winners – those that stay go down with the ship in flames.
We told you so…is what we will say.
So Apple is not going to pay any of that unfair tax – and it is not going to be a factor. They will pay one million in legal fee’s to stall until Ireland leaves the EU and then the predictable legal reversal will take place. Are you seeing with different glasses now.
Finally, Apple is about to release new products. Apple is going to have the largest part of its billion plus users – three years and longer without an upgrade – upgrade. Upgrade pads. Upgrade to the IWATCH like me. UPGRADE their phones. Upgrade their mac book pro like my wife.
Everyone is upgrading. The stock price of Apple is going to soar. China will roar back. Asia will roar. India will come on line for the first time. Those shorting Apple will get killed.
We are long on Apple. We feel the market has underestimated – under valued and mis priced Apple – including in the value to innovation area. APPLE is unmatched in every category of excellence and remains by far the leading hardware software technology products on earth.
Finally, Samsung requires rebooting your phone enough why buy buggy inferior hardware software when they steal technology from Apple having lost on court. The Korean’s are thieves. Why patronize and buy from firms who rip off others?
Microsoft released its upgrades for Windows 10 and true to its brand all the web cam stopped working. The bugs were so bad. Why buy buggy software that robs everyone of so many lost hours when you can have more fun – return your production – and have so much more fun as an experience with APPLE.
We believe market share for Apple will continue to grow based on the factors of technology leadership – superior experience – far lower bug and failure rates.
Watch Apple Stock – because for Apple share buyers next week may already almost certainly be too late to get the better value – get enough at today’s price and remember we suggested the value be explored fully with your licensed broker – fortunes are made when you act.
So an Apple a Day keeps poverty away for investors.
Berny Dohrmann – Long on Apple……— August 31, 2016