Ireland’s Minister of Finance, Michael Noonan, said his country will appeal the commission’s ruling.
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Ms Vestager said the core of the case against Apple was that it had an Irish registered company that booked most of the profits generated across Europe.
Earlier this week, the European Commission concluded an enquiry into Apple’s European tax situation, concluding that the company owes Ireland $13.5 billion in unpaid taxes. Like many other United States companies, Apple keeps the majority of its earnings overseas to avoid paying the US’ corporate tax rate of 35 percent on profit.
Tim Cook, Apple’s Chief Executive Officer, believes the European Commission is picking on Ireland for political reasons, in order to harmonise the tax system across the whole European Union.
The move comes despite increasing division among Irish ministers over whether to appeal the ruling issued by Europe’s competition authorities.
The Irish government has similarly denied any wrongdoing.
The Dáil will be recalled on Wednesday to approve the appeal that was given the go-ahead by Cabinet.
On Friday afternoon a compromise was finally reached during a short cabinet meeting.
Mr Cook had warned that if the Irish government did not join it in appealing, it would send the wrong message to business in an economy partly depending on companies such as the tech giant.
Our appeal will be founded on advice and documentation of the attorney general.
If someone said they wanted to give you $14.5 billion, you’d take it.
US has the power of doubling tax rates of European companies that have an established presence in that country. Any company could have done the same. This is an intrusion beyond the competence of the commission.
“This ruling has seismic and entirely negative consequences for job creation in the future”, he said.
“The Dáil may be called next week to debate the matter, which is something Sinn Féin has called for, but we need to have access to the full ruling ahead of any such debate”. “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 wrote. The review, whose details will be outlined in the coming days, will not look at the country’s 12.5 percent corporate tax rate, one of the lowest in the West.
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This is obviously not a decision that any country would come to lightly, especially given that the money would be the same amount that was spent on the Ireland’s health service past year.
