Accounting
Ireland to decide how to use Apple’s €13B it didn’t want
Ireland just landed a challenge most countries would envy: how to spend an almost €13.8 billion ($15.2 billion) windfall that Apple Inc. was ordered to pay in taxes by the European Union’s top court.
Ironically, the Irish government has always maintained that it didn’t think Apple owed these taxes. But the EU’s Court of Justice Tuesday
The money involved has been sitting in escrow since an initial EU court ruling in 2016, and the bloc’s competition chief, Margrethe Vestager, said in a news conference that the taxes “must be released to the Irish state.”
Simon Wohlfahrt/Bloomberg
The Irish finance ministry said in a statement that it “respects the findings” even as it continued to insist that “Ireland does not give preferential tax treatment to any companies or taxpayers.” It added that the process of transferring the assets from the escrow fund will now commence.
“It is a complex process which is expected to take a number of months to conclude,” Irish Finance Minister Jack Chambers told reporters Tuesday afternoon. “It is a one-off payment and we will have discussions with party leaders on what next steps will be.”
The funds have been accruing interest since it was paid by Apple into an escrow account. The Irish government said in July the total value of the fund stands at €13.8 billion, after generating €400 million in 2023. The total represents about 15% of the upcoming government budget.
The sudden cash bonanza comes as Irish politicians are expecting the government to call an election in the coming months, adding an extra charge to the debate on how to use it.
Opposition parties are already calling for a parliamentary debate on how to use the money, with criticism that the government had defended corporate interests, and not the public’s.
“Everybody’s going to be demanding everything, and it’s going to be very hard for the government to say no when they want to basically get back into power,” said Aidan Regan, an associate professor at the School of Politics and International Relations at the University College Dublin.
The country faces a housing crisis and a record number of people are homeless with a lack of supply and house prices out of reach of most. Ivana Bacik, the leader of the Labour Party, said in a post on X that the proceeds of the case could “be used to underpin a dedicated long-term housing fund.”
However, the spending in the budget for 2025, which will be announced Oct. 1 has already been decided, said Chambers. “This will not impact on the parameters already set out for Budget 2025,” he told reporters.
Rare surplus
Dublin is in the enviable position of having one of Europe’s rare budget surpluses, thanks to the presence of all those multinational companies. In September, the government reported a significant increase in corporation tax receipts, and officials are working to set up a sovereign wealth fund that the finance ministry estimates could eventually reach €100 billion.
Even with such healthy public finances, €13.8 billion is still a “huge amount of money for a small country,” said Regan.
There were concerns in Dublin that the case — and subsequent appeal — would create uncertainty around tax affairs in Ireland, where low rates had long been a draw. The country has remained an attractive hub for the tech and pharmaceutical industries, with many of the world’s largest companies, including Meta Platforms Inc, Alphabet Inc. and Pfizer Inc., maintaining large physical presences.
Apple was one of the first tech giants to set up in Ireland, as a result of its deliberately low corporate tax rate in the 1980s and early 1990s to attract foreign investment. The company set up its European headquarters outside the southern city of Cork in 1980, and now employs around 6,000 in Ireland.
Aprio, a Top 25 Firm based in Atlanta, has acquired JMS Advisory Group, a firm that specializes in unclaimed property compliance and escheat process development, also based in Atlanta
Financial terms of the deal were not disclosed. Aprio ranked No. 24 on Accounting Today’s just released
JMS was founded in 2006 and helps clients mitigate risk and capitalize on opportunities through managed unclaimed property compliance. The team includes attorneys, CPAs, CFEs and others.
JMS has a wide range of clients, including enterprise companies, financial institutions, credit unions, insurance companies, hospitality and health care organizations.
“As Aprio continues its rapid growth, we are committed to expanding our services to meet the evolving needs of our clients,” said Aprio CEO Richard Kopelman in a statement Tuesday. “The addition of JMS gives us the opportunity to continue strengthening our position as a future-focused advisory firm. JMS’s focus on escheat management and asset recovery not only enhances our current capabilities but also allows us to deliver even more impactful solutions to help businesses navigate complex compliance challenges.”
JMS president and CEO James Santivanez is joining Aprio as a partner and provides guidance to clients on unclaimed property and state and local tax issues.
“We created JMS to make an impact nationally in the unclaimed property consulting industry, and I’m proud of our nearly 20-year history of helping clients mitigate risk and capitalize on opportunities resulting from accurate and properly managed unclaimed property compliance,” Santivanez said in a statement. “Joining with Aprio takes us to the next level, allowing us to build upon our success while providing even greater value to our clients. This is an exciting next step in our journey.”
JMS founder and director Sherridan Santivanez is also joining Aprio as a partner. He specializes in representing clients before state enforcement authorities and managing complex audits and voluntary disclosures for some of the world’s largest companies. She provides strategic guidance on audit preparation and navigates interactions with state and third-party auditors.
Aprio received a
The American Institute of CPAs and the National Association of State Boards of Accountancy are asking for comments on their proposal for an additional pathway to CPA licensure through
The AICPA and NASBA proposed the
The UAA changes would:
- Enable states to adopt a third licensure pathway that requires earning a baccalaureate degree with an accounting concentration, completing two years of professional experience as defined by Board rule, and passing the Uniform CPA Examination;
- Shift to an “individual-based” mobility model, which allows CPAs to practice in other states with just one license; and
- Add safe harbor language to ensure CPAs who meet existing licensure requirements preserve practice privileges.
The proposals come as several states are already moving forward with their own changes, including
The updates reflect feedback gathered during a late 2024 exposure draft period and forward-looking solutions being advanced by state CPA societies and boards of accountancy to increase flexibility for licensure candidates while maintaining the integrity of the CPA license.
The AICPA and NASBA are asking for comments on the proposed changes by May 3, 2025. They can be submitted through this
The UAA offers state legislatures and boards of accountancy a national model they can adopt in full or in part to meet the licensure needs of each jurisdiction.
The proposal would maintain the current two pathways to CPA licensure:
- Earning a post baccalaureate degree with an accounting concentration, completing one year of professional experience as defined by Board rule, and passing the CPA exam; and,
- Earning a baccalaureate degree with an accounting concentration, plus an additional 30 semester credit hours , completing one year of professional experience as defined by Board rule, and passing the CPA exam.
Small business employment held steady last month, according to payroll company Paychex, while wage growth continued below 3%
The
“Our employment data continues to show moderate job growth and wage growth below three percent,” said Paychex president and CEO John Gibson in a statement Tuesday. “The consistent long-term trend we’re seeing is a small business labor market that is resilient and stable with little job movement among workers. At the same time, small business owners are optimistic about future business conditions despite uncertainty about how to adapt to a rapidly evolving legislative and regulatory landscape.”
The Midwest remained the top region in the country for the ninth consecutive month with a jobs index level of 100.54. Seven of the 20 states analyzed gained more than one percentage point in February, led by Texas (up 2.11 percentage points).
Phoenix (101.92) increased its rate of small business job growth for the fourth month in a row in February to rank first among the largest U.S. metros.
Construction (3.29%) regained its top spot among industries in terms of hourly earnings growth in February, followed closely by “other services” (3.27%) and manufacturing (3.21%).
The pace of job growth in manufacturing gained 2.39 percentage points to 99.52 in February, the industry’s biggest one-month increase since April 2021.
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