The European Commission says the Irish government helped Apple artificially lower its tax bill for more than 20 years. They have given Illegal Tax Incentives to Apple.
In the biggest tax demand ever imposed by the European Union, the Irish government has been ordered to recover almost $15bn of unpaid taxes from Apple.
The world’s richest technology company has its headquarters in California, US, and its European base in Ireland.
The European Commission says the Irish government granted illegal state aid by helping Apple artificially lower its tax bill for more than 20 years.
Both parties deny tax evasion and are planning appeals.
What does it all mean for doing business in the European Union?
Presenter: Jane Dutton
Guests:
Conor McCabe – University College Dublin
Tove Maria Ryding – European Network on Debt and Development.
Liza Lovdahl-Gormsen – British Institute of International and Comparative Law.
Source: Al Jazeera News
Ireland has been accused of providing illegal tax incentives to Apple. The European Commission launched an investigation into the matter and concluded that Ireland granted undue tax benefits of up to €13 billion ($15 billion) to Apple. The Commission argued that these tax incentives allowed Apple to pay significantly less tax than other businesses, which amounted to illegal state aid. As a result, the Commission ordered Ireland to recover the unpaid taxes from Apple. However, both Apple and Ireland appealed the decision, and the case is currently ongoing in the European courts.
