Apple and Ireland to challenge $14 billion EU tax ruling

Apple and Ireland to challenge $14 billion EU tax ruling

Apple plans to issue a formal appeal to the European Commission's ruling that obligates the company to reimburse Ireland for nearly $14 billion in back taxes. The entire ordeal dates back to August, when the European Commission ruled that the Republic of Ireland provided Apple with illegal aid through a favorable tax cut, which in turn violates the EU's state-aid rules.

The tech giant, who has its European Headquarters located in Cork, has allegedly paid much less than the 12.5% corporate tax rate that is standard for Ireland over the course of 11 years (2003-2014). European Competition Commissioner Margrethe Vestager has said that Apple enjoyed a tax rate as low as 0.005% in 2014.

Apple will appeal against this decision at Europe's second highest court sometime this week, according to its General Counsel Bruce Sewell. Sewell has also added that the corporation was deliberately targeted as such cases attracted a lot of media attention:

"Apple is not an outlier in any sense that matters to the law. Apple is a convenient target because it generates lots of headlines. It allows the commissioner [Margrethe Vestager] to become Dane of the year for 2016"

The Irish government also plans to take similar measures. The nation was accused that it offered tax cuts to large corporations in return for maintaining jobs, which prompted Ireland's finance ministry to issue a declaration on Monday, stating that the country “does not do deals with taxpayers” and that the Cupertino-based manufacturer paid the full amount of tax with no state aid being provided.

source: Reuters via Engadget

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18 Comments

1. peegieislim

Posts: 68; Member since: Dec 14, 2016

Apple to EU -"you are imposing it wrong "

2. GeekOFW

Posts: 59; Member since: Dec 14, 2016

Greed indeed.

5. mdedenroth

Posts: 17; Member since: Dec 10, 2016

Agreed. Apple should pay the same tax as everyone else :)

3. HugoBarraCyanogenmod

Posts: 1409; Member since: Jul 06, 2014

Exit EU with Brexit, plain and simple

4. peegieislim

Posts: 68; Member since: Dec 14, 2016

Yup bro well said

10. RebelwithoutaClue

Posts: 5485; Member since: Apr 05, 2013

Doesn't really help for this, since it was during EU time. Also when they exit the EU, Apple can't use Ireland for EU tax 'evasion' any more.

6. mdedenroth

Posts: 17; Member since: Dec 10, 2016

In these Panama papers and Football leaks time, it would be very interesting if it was possible to secure that big companies and high income people (like Messi and Ronaldo for instance) paid the right amount of tax

7. SIGPRO

Posts: 2810; Member since: Oct 03, 2012

Apple just pay up.......most greedy and ignorant company ever!

8. BobLawblaw unregistered

I'm one of the few people here in Ireland who thinks we should leave the Eu. A bunch of undemocratically elected telling people what to do. The EU raped us during the financial crisis and our crap government just let it happen. Spineless pricks..

9. SIGPRO

Posts: 2810; Member since: Oct 03, 2012

Well said! The EU raped us (Netherlands) too. And our government are a bunch of pussy's they bow for Brussels.

11. mdedenroth

Posts: 17; Member since: Dec 10, 2016

So now it's time for you to rape back you think? you don't care that 14 billion could have a huge impact on national finance?

13. BobLawblaw unregistered

You're deluded if you think the ordinary Irish taxpayers would ever see any of that money. The EU would find some way to take it back..

15. mdedenroth

Posts: 17; Member since: Dec 10, 2016

Hmm or maybe you're deluded. And no i don't think the 14 billions will go directly back to the taxpayers in Ireland. But I think stuff like this can help against companies cheating with tax in the future. Cause basically Apple didn't cheat Ireland cause they made a deal. But they cheat rest of EU (and US)

12. HugoBarraCyanogenmod

Posts: 1409; Member since: Jul 06, 2014

You made a right choice mate. Ireland for Irish! EU establishment has no right to dictate anything and pinpoint what Irish should and should not. I have taken my country back, it's your turn to take back what yours too.

16. mdedenroth

Posts: 17; Member since: Dec 10, 2016

Honestly I wouldn't care how other countries do their tax. If it wasnt cause they allocated profits from other countries to a place without tax. In this case Ireland probably gets a lot of workplaces in return. Every apple product in Europe, middle Asia and Africa are recorded in Ireland

18. TerryTerius unregistered

After all time, nobody has explained to me exactly what "taking your country back" even means.

19. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

But it's OK for Apple to do it? According to the article the corporate rate there is 12.5% and Apple has been paying .005%. That means they should be paying you 2500 times what they currently are. It's one thing to w***e yourself out, but at least don't be a cheap w***e.

14. ShadowHammer

Posts: 197; Member since: Mar 13, 2015

Interesting that Ireland's finance ministry said they don't do deals with tax payers. I'm curious to see how that gets investigated in the trial. I've understood Ireland to be a big tax haven for companies in Europe. I guess the looming question is whether that was legal under EU rules. I'm fairly neutral regarding Apple, since I have very little experience with them. In some cases, I do believe that big corporations aren't guilty, and just get hosed by government. It remains to be seen if that is the situation here.

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