Thursday, 2 February 2017

Apple will have to pay 13 billion euros for tax aid received in Ireland

Apple will have to pay 13 billion euros for tax aid received in Ireland

Yesterday we told you that the European Commission was concluding his long investigation into alleged tax aid to Apple by the Irish government, and that Cupertino could be forced to pay a figure greater than 1,000 million euros as a result of having benefited from These tax arrangements.

Apple finally sanction will be much higher than expected, because a few minutes ago the Commission announced that Apple will have to return 13,000 million euros to Ireland. The decision was taken after finding that the state aid received by the company have been illegal.

"The European Commission has concluded that Ireland undue tax advantages granted to the company Apple worth up to 13 000 million euros," says the European Commission in its press release. "Under the state aid rules of the EU, this practice is illegal because it allowed Apple to pay much less tax than other companies. Ireland should now proceed to the recovery of unlawful aid".

Margrethe Vestager Commissioner responsible for Competition Policy, said that Member States can not grant selective tax advantages to certain companies, saying it is an illegal measure that contradicts the rules on state aid from the European Union.

The fruit of two years of research
This latest research started in 2014, and the fine corresponds to the taxes the company has not paid between 2003 and 2014. According to the commission, Apple was able to pay an effective corporate tax rate of 1% on profits generated in Europe in 2003, and this was further reduced to reach 0.005% in 2014.

What has made Apple, and many other large international companies, has been recording all sales in Ireland rather than in countries where they have been selling each product, thus avoiding taxes in these countries and limited to paying the Reduced tax required by the Irish authorities.

As explained from the European Commission, this selective tax treatment of Apple in Ireland is illegal because of the state aid rules of the European Union, as it gives them a significant advantage over the other companies that comply with national tax legislation.

Apple for its part has issued a statement in which it is confident that the measure will be revoked, accuses the European Commission to be struggling to rewrite the history of Apple in Europe ignoring tax laws of Ireland and warns that the penalty will A profound and damaging effect on investment and job creation in Europe.

As stated in the Financial Times , the Ministry of Finance of Ireland have also been shown supporters of appeal against the decision of the Commission to the European courts despite being the government of that country that receive money from Apple, so The last word on this case could not yet be written.

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