Ireland to submit appeal of EU's $14.5B Apple tax ruling on Wednesday
The Irish government is about to formally submit its appeal of the European Commission's tax ruling on Apple, Finance Minister Michael Noonan announced on Tuesday.
"The government fundamentally disagrees with the European Commission's analysis and the decision left no choice but to take an appeal to the European Courts and this will be submitted tomorrow," Reuters quoted Noonan as telling a European Parliament committee in Brussels.
Concluding a lengthy investigation, the European Commission recently ordered Ireland to collect $14.5 billion in back taxes from Apple. The country was accused of offering preferential tax deals, something constituting illegal state aid under European law. Apple has taken advantage of its Irish tax situation to funnel billions in international revenue, avoiding what it might normally owe in host countries.
While Ireland could theoretically benefit from the extra tax revenue, the country is thought to be worried about scaring away other multinational corporations, both for their tax contributions and the jobs they might provide to the economy.
Apple is also appealing the ruling, and has regularly defended itself by claiming it follows the law and pays everything it owes.
The European Commission has made similar findings against Belgium, the Netherlands, and Luxembourg for their tax deals with companies like Starbucks and Fiat Chrysler. Those parties are also appealing, but they -- along with Apple and Ireland -- may have to wait several years for a resolution.
"The government fundamentally disagrees with the European Commission's analysis and the decision left no choice but to take an appeal to the European Courts and this will be submitted tomorrow," Reuters quoted Noonan as telling a European Parliament committee in Brussels.
Concluding a lengthy investigation, the European Commission recently ordered Ireland to collect $14.5 billion in back taxes from Apple. The country was accused of offering preferential tax deals, something constituting illegal state aid under European law. Apple has taken advantage of its Irish tax situation to funnel billions in international revenue, avoiding what it might normally owe in host countries.
While Ireland could theoretically benefit from the extra tax revenue, the country is thought to be worried about scaring away other multinational corporations, both for their tax contributions and the jobs they might provide to the economy.
Apple is also appealing the ruling, and has regularly defended itself by claiming it follows the law and pays everything it owes.
The European Commission has made similar findings against Belgium, the Netherlands, and Luxembourg for their tax deals with companies like Starbucks and Fiat Chrysler. Those parties are also appealing, but they -- along with Apple and Ireland -- may have to wait several years for a resolution.
Comments
I think Apple iOS ddevelopment in general has gone down the tubes. I upgraded all my apps two weeks ago and now AppStore is reporting that there are 44 new "updates". Sometimes I wonder if apps are updated with pictures and text for the current week's ad or promotion.
I get the impression that banks in Ireland really benefit from having access to Apple's "Float".
The moment Ireland leaves the EU, for all the money they make in the EU Apple has to pay tax in the EU.
That is the sweet deal with Ireland, Apple can argue they can pay all the tax it owes because it pays tax in Ireland.
With Ireland gone from the EU the sweet deal is gone too.