Daily Management Review

Ireland recovers €14.3 billion from Apple


09/19/2018


Ireland received 14.3 billion euros from American Apple within the program of collection of tax subsidies illegally received by the company, as well as the corresponding interest, as decided by the European Commission.



MrPONTEIRO
MrPONTEIRO
Ireland's Finance Minister Paschal Donohoe announced on Tuesday that the government of the country has charged Apple 13.1 billion euros of unpaid taxes, as well as 1.2 billion euros as interest.

Earlier, the government of Ireland and Apple agreed that the company would transfer funds to a special escrow account for the period of consideration by the European Court of Appeals of Apple and the Irish authorities on the decision of the European Commission.

As reported, in August 2016, the European Commission demanded that Apple refund illegal tax subsidies to the Irish government. Apple appealed this decision in court, and its head, Tim Cook, called it political and dishonest and stated that the EC's approach would affect Apple's further decisions about investing in Europe. The collection period set by the European Commission expired on January 3, 2017.

Donohoe stressed on Tuesday that the Irish government did not agree with the decision of the European Commission on the Apple case and "seeks its cancellation in European courts," the Financial Times reported.

According to the EC, Ireland provided Apple with illegal tax breaks between 2003 and 2014, which led to a significant reduction in tax payments to the company. According to the European Commission, "the selective approach of the Irish authorities has ensured a reduction in the effective tax rate on Apple's profits from 1% of profits in Europe in 2003 to 0.005% in 2014."

Low corporate tax rates are the cornerstone of Ireland's economic policy. The base tax rate is 12.5% and is the lowest among countries in Western Europe. Thanks to this, Ireland hosts divisions of more than 700 large American companies that created 140,000 jobs in the country.

source: reuters.com






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