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EU Rules Apple Received Illegal Aid From Ireland, Owes Billions in Taxes

EU Rules Apple Received Illegal Aid From Ireland, Owes Billions in Taxes

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The European Commission has ruled the Apple received illegal state aid from Ireland and will owe billions of euro in back taxes to Dublin, reports the Financial Times.

A 130-page judgment by the commission follows a three-year investigation into claims that two advance tax opinions issued by Dublin violated EU law by granting Apple an advantage not available to other companies.

The ruling was apparently circulated by competition commissioner Margrethe Vestager to her counterparts in the EU's executive branch this morning.

The decision will likely further tensions between Brussels and the United States which has urged the EU to drop the case. The US Treasury accused the commission of becoming a “supranational tax authority” that threatened international agreements on tax reform.

The commission is calling for a new tax assessment on Apple. How much Apple has to pay was not in the decision. However, people briefed on the matter expect the amount to reach billions of euros.

Earlier this month Tim Cook said. “I hope that we get a fair hearing. If we don’t, then we would obviously appeal it.”

“The government‘s case is very robust,” said Ireland’s finance ministry. “The minister has indicated previously that any adverse ruling should be appealed in the European courts and will recommend that course to cabinet.”

More details in the full report below...

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EU Rules Apple Received Illegal Aid From Ireland, Owes Billions in Taxes

talhashahi - August 30, 2016 at 3:51am
And Apple will put this fine in shape of price bump of iPhone 7. Pity.
saltaugeopa - August 30, 2016 at 4:18am
Or they match the price within the cost it took to make it. Joy.
SayingWhatEveryonesThinking - August 30, 2016 at 3:42am
The EU is trying to find a way to pay for Brexit? Screw the EU! Time for the rest to leave - take your countries back! Countries can decide their own taxes without the EU.
clown - August 30, 2016 at 12:58am
There is no possible way so many big companies would be successful in his this country. The fact many would be most likely out of business considering the high tax rates, the extremely gross over cosy of the health care systems. The democratics feel it necessary to charge extremely large taxes to corporations. The fact large companies have to keep extremely large cash reserves to cover market down turn, poor business sales. The fact a company can have extremely $200 billion in reserves is testament to past failures. They are lambasted for making many products overseas, the fact remains many of the materials are only available overseas. They could make more products here however, in some case they will be less profitable. The fact remains the health care system cost so much because there are no price controls. Companies are charged billions in taxes that passed in the form of cost on the consumer. Many CEO"s make huge sums of money based on performance. The fact is charging upwords of 50% on corporations force them to go overseas , they simple can remain profitable and weather a market downturn. Lowering corporate tax rates will substantially increase production in the us. They could even incorporate the tax based on employees .
clown - August 30, 2016 at 12:49am
Yea yea. The tax question is interesting . I wonder when the agreement was made if there was talk of eventually having to pay back taxes for the agreement. I would be interesting if they actually leave the country and fold up shop.
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