In 2014, Apple, which employs abour 6,000 people in the southern city of Cork, paid an effective corporate tax rate of just 0.005 percent on its European profits – equivalent to just 50 euros for every million it took in.
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Apple could pay easily; it has $215 billion held overseas.
The Commission allege that Apple Sales International registered their profits in Ireland through a faceless and nameless ‘head office’.
The remarks from Juncker come as the United States, Apple and the Irish government have all strongly attacked the ruling.
The EC, which launched an in-depth state aid investigation in June 2014, concluded that two tax rulings issued by Ireland to Apple have substantially and artificially lowered the tax paid by Apple in Ireland since 1991.
Moreover, Stiglitz suggested that Apple CEO Tim Cook is acting “totally irresponsible” but also Ireland’s action is “harming other countries” as well.
Here is how the whole situation unfolded:1.
In Brussels, EU Competition Commissioner Margrethe Vestager vigorously defended the legality and arithmetic of the tax clawback order affecting Apple. Those countries were Ireland, the Netherlands and Luxembourg. “We believe that makes us the highest taxpayer in Ireland that year”. Its chosen remedy is for Ireland to collect the unpaid taxes of “up to €13 billion, plus interest”.
After a meeting on Friday morning, the Irish cabinet agreed to join Apple and legally challenge the EC’s ruling.
(Photo JOHN THYS/AFP/Getty Images)3.
Within hours of Tuesday’s ruling, Irish finance minister Michael Noonan announced in a statement his intent to recommend an appeal to the Irish cabinet.
He went on to call the ruling “maddening” and said, “When you’re accused of doing something that is so foreign to your values, it brings out an outrage in you”. She said officials used figures Apple provided to them, as well as from a U.S. Senate hearing into the matter several years ago.
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According to Reuters, the USA treasury is not happy, they blasted the decision saying “it undermines the environment in Europe for worldwide business”.
