Earlier this week, the EC determined that a tax arrangement between the electronic giant and Irish tax authorities – which saw Apple move the bulk of its profits to a company that existed only on paper – amounted to illegal state aid.
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The European Commission ruled Wednesday that Ireland had helped Apple artificially lower its tax bill for more than 20 years, assistance that it said constituted illegal state aid for the company. According to the EC, these tax benefits enabled Apple to pay substantially less tax than other businesses over many years. The commission ruled that Apple received an unlawful subsidy from Ireland in the form of a preferential tax deal.
The remarks were aimed at reassuring U.S. lawmakers following the Commission’s ruling on 30 September, that tax arrangements between Ireland and the USA firm broke European Union laws on state aid.
“Absolutely, as a member of the European Commissioner it is a bit like being a member of Cabinet”.
“This is real change, and it is change for the better”, said Vestager today.
Immediately after it came down this week, Ireland’s Finance Minister, Michael Noonan, criticized the Commission’s ruling, saying he “profoundly” disagreed with it.
Sewell said Apple paid $400 million in corporate income taxes in Ireland in 2014.
Tim Cook has responded with a long and strongly wordy statement, which you can read in full here.
Both Apple and Ireland have slammed the decision.
These profits were not subject to tax in any country under provisions of Irish law that are no longer in force.
There is a clear intention to emphasise the certainty of the tax code.
Mr Martin said that appealing the ruling was essential “to protecting the foreign investment which is vital to Ireland’s economy”. “We are confident that the Commission’s order will be reversed”.
Analysts are now warning of transatlantic discord, with USA lawmakers concerned the result represents a European encroachment on the United States potential tax base.
In October Brussels ordered USA coffee giant Starbucks and Italian automaker Fiat to each repay up to €30 million in back taxes to the Netherlands and Luxembourg respectively.
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Public Expenditure Minister Paschal Donohoe said Dublin stood behind its corporate tax regime as a means of creating jobs.
