Luck O’ the Apple’s Alleged Transfer Pricing; eBay and PayPal Headed for Splitsville; Confidence Bruiser

An Apple away…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

 

There are some very complicated things going on with Apple on the other side of the Atlantic. Except Apple probably won’t get in too much trouble for any of it. Well, maybe a little. It depends on whom you ask. As for Ireland? Well, the Emerald Isle just might be in a whole vat of hot water. At issue is whether or not Apple did something called transfer pricing, the details of which I will gladly spare you. Though some would argue all the trouble has to do with whether or not Apple was getting illegal tax breaks from Ireland – a very major no-no, in the eyes of the EU anyways. In any case, there is a report coming out from an EU commission and, in keeping with the spirit of all things that involve government, it’s all very convoluted.  If anyone or any entity, for that matter, gets fined, it will likely be Ireland, that very corporate-hospitable country, who some people argue was a little too friendly to Apple and whose allegedly generous tax-breaks amounted to, I kid you not, nothing short of “state aid,” according to the Commission. And if you were wondering how any of this affects you, then rest assured – it doesn’t, really.

Breaking up is not so hard to do…

Image courtesy of sdmania/FreeDigitalPhotos.net

Image courtesy of sdmania/FreeDigitalPhotos.net

What Carl Icahn wants, Carl Icahn gets. Eventually, anyways. For instance, activist investor Carl Icahn wanted eBay and PayPal to march head first into splitsville hoping for a “tax-free” spin-off. And wouldn’t you know it, the two companies did just that. How convenient. It helps that Icahn owns about 30 million shares of eBay and scored about $100 million today from the move. EBay, by the way, pulled in revenues of almost $10 billion this year, while PayPal pulled in $7.2 billion. Before you scoff at PayPal, know that PayPal grew at a 20% rate compared to eBay’s 10% rate. So now who’re you gonna scoff at? Huh? This move frees up PayPal to pursue a whole bunch of opportunities that might have held it back if it was still tied to eBay. Staying together would have proved “less advantageous” for both. Ah! What a break-up story. I wonder which studio is going buy the rights to this corporate tearjerker.

Speaking of self-esteem…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Looks like consumers aka you, me, us aren’t feeling very fiscally confident these days, that is, according to an informative index that actually gauges our collective confidence level. Which, by the way, weighs in at at disconcerting 86. It’s disconcerting in that last month our collective confidence level was over a 93 – a seven year high, mind you. Quite the tumble, I’ll say. So what exactly is shaking our confidence lately? Not so minor things like job growth that hasn’t been growing quite as quickly as we’d like. And if that isn’t enough of a confidence deflater then how about the fact that Americans also don’t much care for the slow-ish economic growth. But some really intelligent economists out there find that this months “86” index reading is but a minor hiccup in an otherwise positive, albeit, slow economic recovery. So fear not, oh faithful consumer, as falling gas prices and job growth (even though slow, at times) are all within reach.

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One response to “Luck O’ the Apple’s Alleged Transfer Pricing; eBay and PayPal Headed for Splitsville; Confidence Bruiser

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