In demanding this week that Apple pay $14.5 billion in back taxes, the Commission said the company, which is based in California but has offices in Ireland, paid just 0.005 percent taxes in that country in 2014. No companies received preferential treatment, they said.
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Apple has had a base in the southern city of Cork since 1980, where it employs more than 5,000 people and through which it routes worldwide sales, avoiding billions in corporation taxes. The European Commission has denied any bias against USA companies.
I was involved with the Irish Development Agency (IDA) back when Apple first made a decision to go to Ireland.
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.
Waterford TD John Halligan, who had been the most likely to quit the Government over the issue, said: “I believe Apple should have paid the money, but I also think the Government shouldn’t be destabilised or brought down”.
Apple and Dublin are now facing a bruising fight with the commission over the potential payment.
The European Commission has other giant multinationals in its sights, including Starbucks, McDonald’s, Amazon.com and Fiat.
Apple Chief Executive Officer Tim Cook denies the European Union allegations.
“However, during the 2013 US Senate hearings Apple’s head of tax policy, Mr Philip Bullock said there was a tax agreement with Ireland which amounted to a maximum of approximately 2%”. Ireland is phasing out its controversial “double Irish” tax structure.
As for the appeal on the Apple tax decision he said: “Hopefully it will be resolved as quickly as possible”.
Apple took advantage of the program and created many jobs in the region; Dell and Lotus soon followed. The commission denied that allegation.
And the Sunday Business Post reported that Brussels is focusing on six in particular that could lead to Apple-style investigations.
Mr. Dijsselbloem is in conflict with the commission over its ruling in October a year ago that the Netherlands, where he is finance minister, offered a sweetheart deal to coffee chain Starbucks Corp. that amounted to an illegal subsidy.
While the EU’s Apple ruling does not appear to have had an immediate impact on Singapore companies or the tax regime here, Mr Woo said it is too early to assess any possibility that Singapore’s sovereign rights to use its tax system to attract real economic activity may be affected if there is any perceived unfair competition.
Dan Friedell adapted this story for Learning English based on reports by VOANews.com and Reuters.
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