Ireland's coalition government has agreed to appeal the European Commission's ruling that it must collect 13 billion euros in back taxes from Apple, according to Reuters. A motion will come before the country's Parliament on Wednesday seeking an endorsement of that decision, a government spokesperson said.

It was always expected that both Apple and Ireland would appeal any adverse decision, as insisted by the country's finance minister Michael Noonan, but Ireland's cabinet members became divided on the matter following the ruling. After meeting on Friday, however, the cabinet has seemingly come together and agreed to join Apple's fight against the European Commission.

Apple-EU
Earlier this week, the European Commission ruled that Apple received illegal state aid from Ireland, following a three-year inquiry into the company's tax arrangements in the country. The investigation's results showed that Apple allegedly paid between 0.005% and 1% in taxes in Ireland between 2003 and 2014, compared to the the country's headline 12.5% corporate tax rate.

Apple CEO Tim Cook called the findings "total political crap" and described the lower end 0.005% tax rate as a "false number." In an open letter, Cook said Apple is confident the decision "will be reversed," but the appeal process could take several years in European courts. Apple has previously said it fully complies with international tax law and is the largest taxpayer in the world.

Cook also said that Apple has "provisioned several billion dollars for the U.S. for payment," and he forecasted that it could repatriate that cash next year. Europe's competition commissioner Margrethe Vestager previously said that Apple could lower its Irish tax bill by paying appropriate taxes in other countries, or by increasing R&D payments to its U.S. operations.

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Top Rated Comments

japanime Avatar
61 months ago
Apple should change its motto to:

Designed in California
Sheltered in Ireland

:D
Score: 31 Votes (Like | Disagree)
jamezr Avatar
61 months ago
This is funny now Ireland is going to appeal to change being paid 13 BILLION???? Why? Because if this stands up then other corporations will not use Ireland as a tax haven anymore and they stand to lose billions more than just 13 billion.
Score: 16 Votes (Like | Disagree)
Bigsk8r Avatar
61 months ago
The commission made a tactical error by going for it all. In a real court of law, Apple will be able to prove that they were doing business in Ireland since the 80's, conducting the same partitioning of profits and taxes for over 20 years, and all 100% within existing tax laws.

It is not their fault that 'everyone' sees an issue with them playing by other peoples rules. The EU could have dropped the number a lot and leaned on Ireland to modify it's tax code. Instead they got greedy and went after a number so large that both Apple and Ireland will stand and fight. The EU / commission will never see a fraction of this money because they are arrogant and not thinking smartly.
Score: 14 Votes (Like | Disagree)
Zarniwoop Avatar
61 months ago
Ireland should be collecting taxes on behalf of all 28 member states. All Apple profits made in France are taxed in Ireland. Other EU states already are paying Ireland more than it contributes to the Union. Can Ireland be same time under-performer in public economy to receive compensation from other states, and same time refuse to tax companies? This is a puzzle for Ireland... if they tax companies as they should, countrys economy would rise to a level, that EU wouldn't compensate any more their bad economy. But same time it wouldn't be attractive for companies who are always looking for the lowest tax rate possible.

So it is not just an illegal state aid, but Irelands feast is paid by all member states - and Ireland only benefits. And the tax avoiding companies.

This is not a matter can a sovereign country make their own tax laws... Ireland is doing it on behalf of 500 million people Union.
Score: 12 Votes (Like | Disagree)
nebo1ss Avatar
61 months ago
Netherlands has been fairly popular, although the EU has been stretching into their sovereignty as well. They aren't based in Ireland for the weather.
Ireland has the lowest tax rate in Europe at 12.5 percent that is not about to change. What the EU and others are upset about is not the 12.5 percent tax rate. It is the additional "Shell company" Apple sales international" which has zero employees and zero assets and no tax liability in Ireland even thought it is set up in Ireland. All of the international income outside of Ireland is channeled through this company, and then to the Caribbean. This company pays no tax anywhere.
When the EU says the effective rate in Ireland is 1 percent or less they are looking at the total income going through ireland. The piece earned by the local tax paying company and the piece that no tax is pay on in the international company.
Score: 7 Votes (Like | Disagree)
Parkin Pig Avatar
61 months ago
This guy summed it up beautifully...

Attachment Image
Score: 4 Votes (Like | Disagree)

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