Last week, European Union antitrust regulators ordered Apple to pay up to 13 billion euros ($14.5 billion) in taxes to the Irish government after ruling that Ireland granted undue and selective tax benefit to the company.
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In a news conference on Friday announcing the Irish government’s decision to appeal, Reuters reported that Noonan called the retroactive nature of EU’s anti-Apple ruling “little short of freakish and outrageous”. Barring a tax holiday allowing cash to be returned at a relatively low tax rate – there’s been little political momentum for one as of late – Apple would have to pay a 35% tax on any returned funds.
Juncker said in a speech at the summit that the state aid rules resulting in the “landmark ruling” were applied “without discrimination and without bias”. Apple constructed its company to use the tax regime. “It’s not true: There wasn’t a special deal between Ireland and Apple”. While the EC has asked Ireland to collect these taxes, the country’s cabinet was somewhat divided on the matter. The United States has the highest corporation tax rates among the advanced economies – 40% in the U.S. compared to just 15% in Ireland.
The Green Party said that the Government’s decision to appeal the Commission’s Apple tax findings was “inconsistent” with fighting for global tax justice. Apple’s profits in Europe, the Middle East, Africa and India were thus, in principle, taxed in Ireland at close to a zero rate.
She told Reuters in an interview that other firms’ arrangements, which involve routing profits to Irish registered subsidiaries tax resident in places such as Bermuda, might fall foul of the Commission on similar grounds.
Despite having some serious misgivings now regarding the European Commission’s attitude to businesses as soon as they become successful, Mr. Cook emphasized that his company will definitely continue with its expansion plans in Cork, a city in southwest Ireland. An EU panel ruled the company’s low taxes were improper government aid.
The US is stepping up efforts to oppose the ruling.
Noonan said: “There’s envy across Europe about how we’ve managed to establish so many HQs in Dublin”.
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“The president will. lead the discussion at the G20 about combating tax avoidance strategies that are implemented by some multinational corporations”, Earnest said. He said Washington is focused on finishing trade deals with Asia-Pacific governments and the EU.
