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Apple and Ireland to challenge EU tax ruling this week

Apple plans to appeal this week against the European Commission’s ruling that it pays up to €13bn (£11bn) to Ireland in back taxes.

EU regulators ruled Apple’s controversial tax deal was illegal, and is demanding the record penalty.

The tech giant says it has been singled out and was “a convenient target”.

Ireland is also contesting the decision, claiming EU regulators were interfering with national sovereignty.

‘Misunderstood law’

Apple’s European headquarters are located in Ireland – where the standard rate of corporate tax is 12.5%.

But in August, the commission said Ireland had enabled the company to pay substantially less than other businesses, in effect paying a rate of no more than 1%.

Apple and Ireland

€13bn

demanded in back taxes. Equal to:

  • ALL of Ireland’s healthcare budget
  • 66% of its social welfare bill
  • 15 million iPhones
  • 27% of Apple’s 2015 profit
Ireland’s finance ministry said in a strongly-worded statement on Monday that the European Commission had “misunderstood the relevant facts and Irish law”.

“Ireland did not give favourable tax treatment to Apple – the full amount of tax was paid in this case and no state aid was provided,” it said. “Ireland does not do deals with taxpayers.”

And Apple’s general counsel Bruce Sewell told Reuters that the commission had disregarded tax experts brought in by Irish authorities.

“Apple is not an outlier in any sense that matters to the law. Apple is a convenient target because it generates lots of headlines,” Mr Sewell said.

Even if Apple lost its appeal, the record tax bill should not be a problem for iPhone maker which saw a net profit of $53bn in the 2015 financial year.

Apple is not the only company that has been targeted for securing favourable tax deals in the European Union.

Last year, the commission told the Netherlands to recover as much as €30m (£25.6m) from Starbucks, while Luxembourg was ordered to claw back a similar amount from Fiat.

 

Source: BBC.com

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.

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