EU says Apple owes Ireland $14.5 billion in uncollected taxes because Ireland has given illegal tax benefits

[SirLinksALot]

SOURCE: CBS NEWS

URL: http://www.cbsnews.com/news/eu-apple-ireland-13-billion-euros-dollars-taxes-illegal-tax-benefits/


BRUSSELS -- The European Union says Ireland has given illegal tax benefits worth up to 13 billion euros ($14.5 billion) to Apple Inc. (AAPL) and must now recover the unpaid back taxes from the U.S. technology company, plus interest.

EU Competition Commissioner Margrethe Vestager said Tuesday: “Member states cannot give tax benefits to selected companies -- this is illegal under EU state aid rules.”

She said a three-year investigation found Ireland granted such lavish tax breaks to Apple over many years that the multinational’s effective corporate tax rate on its European profits dropped from 1 percent in 2003 to a mere  1/2000 percent in 2014.

The Commission said “Ireland must now recover the unpaid taxes in Ireland from Apple for the years 2003 to 2014 of up to 13 billion euros ($14.5 billion), plus interest.”

The Irish government denied granting favorable fiscal treatment to the maker of the iPhone and other consumer electronics products, computer software and online services. “Ireland’s position remains that the full amount of tax was paid in this case and no state aid was provided,” the Irish statement said. “Ireland does not do deals with taxpayers.”

The Irish finance minister, Michael Noonan, said he would seek approval from the Irish Cabinet to appeal the EU Commission’s ruling to European courts.

“It is important that we send a strong message that Ireland remains an attractive and stable location of choice for long-term substantive investment,” Noonan said. “Apple has been in Ireland since the 1980s and employs thousands of people in Cork.”

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[sinkspur]

This is why stuff like Brexit happens.

[GtHawk]

Step one is the EU force Ireland to collect the money from Apple, step 2 is the EU fines Ireland 20 billion for giving Apple so called illegal tax benefits, in a generous compromise offer the EU will settle for Ireland paying a fine of 14.5 billion. Step 3 is the leadership of the EU grants itself record bonuses and pay increases for having increased revenue.

[geronl]

retroactively raising taxes and trying to collect..... uh-huh...


and if Apple simply says no?

[Fishrrman]

GtHawk wrote:
"Step one is the EU force Ireland to collect the money from Apple, step 2 is the EU fines Ireland 20 billion for giving Apple so called illegal tax benefits, in a generous compromise offer the EU will settle for Ireland paying a fine of 14.5 billion. Step 3 is the leadership of the EU grants itself record bonuses and pay increases for having increased revenue."

Step "X" which you haven't considered:

Ireland tells EU that it is exiting immediately (a la Britain).
Ireland keeps Apple and its business.