Daily Management Review

Failure To Recover Taxes From Apple Results In EU Is Taking Ireland


10/05/2017




Failure To Recover Taxes From Apple Results In EU Is Taking Ireland
In a that is being labeled as “regrettable” by Dublin, Ireland is being taken to the European Court of Justice for its failure to recover up to 13 billion euros ($15.3 billion) of tax due from Apple Inc by the European Commission.
 
Citing one of a number of deals the EU has targeted between multinationals and usually smaller EU states, the U.S. tech giant was ordered to pay the unpaid taxes as it ruled the firm had received illegal state aid in August 2016 by the Commission.
 
“More than one year after the Commission adopted this decision, Ireland has still not recovered the money,” EU Competition Commissioner Margrethe Vestager said, adding that Dublin had not even sought a portion of the sum.
 
“We of course understand that recovery in certain cases may be more complex than in others, and we are always ready to assist. But member states need to make sufficient progress to restore competition,” she added.
 
Apple continued to benefit from an illegal advantage until the aid was recovered, the Commission said and added that the deadline for Ireland to implement its decision had been Jan. 3 this year.
 
Vestager declined to comment on possible penalties on Ireland if it were not to comply with an eventual ECJ ruling against it. She also announced a demand for Amazon to pay about 250 million euros in taxes to Luxembourg.
 
Ireland’s finance ministry said it was committed to collecting the money due pending Dublin’s own appeal of the ruling but added that it had never accepted the Commission’s analysis in the Apple state aid decision.
 
Ireland, it said, was close to setting up an escrow account and had been in constant contact with the Commission and Apple for more than a year. Hiring of at least one investment manager to handle the fund would be included in that.
 
“It is extremely regrettable that the Commission has taken this action, especially in relation to a case with such a large scale recovery amount,” the ministry said in a statement.
 
the government was in “commercially sensitive” talks with Apple about the exact terms of the transfer, in addition to work on the escrow account, Ireland’s Finance Minister Paschal Donohoe said.
 
“I believe we will get a good outcome at the end of it,” Donohoe told state broadcaster RTE.
 
Money was recovered even before appeals were exhausted in other cases of illegal tax advantages, such as Fiat in Luxembourg, Starbucks in the Netherlands and a Belgian scheme for 35 companies, Vestager told at a news conference.
 
Ireland was only planning to conclude the work by March 2018 at the earliest even though it had made progress on calculating the exact amount due, the Commission said.
 
Criticism that they are siphoning off tax revenues and the bloc’s governments are negotiating reforms is faced by Ireland, like the Benelux countries, from bigger EU states.
 
In a Tweet, the latest efforts of the European Commission were applauded by French President Emmanuel Macron.
 
“Bravo to Europe for acting with determination to get tax rules and justice respected,” Macron said
 
(Source:www.cnbc.com) 






Science & Technology

Artificial Intelligence Helps NASA Find An 8th Planet In Orbit Of A Distant Star

Australian Research Success Could Mean Shatterproof Cell Phones Could Soon Be A Realityv

Top ten hi-tech events of the year

Tesla Considering Designing And Developing AI Chips On Its Own To Support Its Auto-Pilot Project

Verizon to introduce 5G in five American cities in 2018

Airbus, Rolls-Royce, Siemens to create an electric aircraft

Study Finds Treatment Efficacy Could Be Sacrificed For Reduced Side Effects In Cancer Therapies By Patients

Some Information About Their Self-Driving Car Research Has Been Disclosed By Apple Scientists For The First Time

A Massive Data Breach Was Covered Up By Uber By Paying Up Hackers

A City Is Can Be Converted To A Living Organism, Showcases China’s Huawei

World Politics

World & Politics

Monitoring Citizens Main Reason For North Korea To Allow Use Of Smartphone By Citizens

Phase Two Of Brexit Talks, Announced On Friday, Would Be Tough, Analysts Say

Elections in Italy: the last chance of Eurosceptics?

15 countries with the highest level of organized crime

Athens agreed with international lenders

EU Pressure Reportedly Forces UK To Bow Down, Could Agree To Pay £50bn For Brexit Divorce

$1 Billion Is The Price For Freedom For Arrested Saudi Prince In Corruption Crackdown: Reports

U.S. Capital Washington Appears To Be In Range Of The Latest Missile Launched By North Korea