EU will order Ireland to collect over $1B in back taxes from Apple - report

On Tuesday the European Commission will find against Ireland's tax arrangements with Apple, and ask the country to collect over 1 billion euros ($1.119 billion) in back taxes, a report claimed on Monday.

In fact the Commission will simply make a recommendation on the total it expects to be collected, leaving the Irish government to calculate the exact amount, one of two sources elaborated to CNBC. Some analyst estimates previously suggested that Apple could owe upwards of $8 billion.

The E.U. has been probing Apple's Irish tax arrangements since 2013, suggesting that the government extended preferential treatment — and hence illegal state aid, under E.U. rules — in order to attract the company's jobs and money. Exploiting various loopholes, the company managed to lower its tax rate on billions in international revenue to just 2 percent, far removed from the 12.5 percent it would usually owe.

Both Apple and the Irish government have denied any wrongdoing and promised to fight any unfavorable ruling, but precendent is not on their side. The Commission has already issued similar findings against the Netherlands and Luxembourg, for their respective tax deals with Starbucks and Fiat Chrysler.

The potential size of the Irish ruling has led Apple CEO Tim Cook and even U.S. Treasury Secretary Jack Lew to put pressure on the Commission. Last week, for instance, a white paper ordered by Lew claimed that the E.U.'s competition directorate is turning into a "supranational tax authority," and undermining "tax certainty."

102 Comments

apple ][ 13 Years · 9225 comments

About 8 years ago

Screw those new jobs that Apple was planning in that country!

Apple should take its business elsewhere, there are plenty of other places to choose!

singularity 11 Years · 1323 comments

apple ][ said:

Screw those new jobs that Apple was planning in that country!

Apple should take its business elsewhere, there are plenty of other places to choose!

So where in the EU should they go? They still need an eu Base and would still have to pay the tax.

ChampionPower 8 Years · 52 comments

ALL:

Perhaps this is yet another good reason (that of national sovereignty) to leave the EU! If this realstionship and deal is good enough for Ireland the Apple then that should be the end of the matter. The EU does not provide Ireland with 6,000 jobs like Apple does, so if I were Ireland I'd simply refuse to abide by their decision! What the hell can they do? Expel Ireland from the EU? That would be a blessing and a death warrant to the lazy bureaucrats in the EU in Brussels.

tallest skil 14 Years · 43086 comments

singularity said:
So where in the EU should they go?

Won’t be around much longer, so they could pick any country therein, really.

singularity said:

apple ][ said:

Screw those new jobs that Apple was planning in that country!

Apple should take its business elsewhere, there are plenty of other places to choose!

So where in the EU should they go? They still need an eu Base and would still have to pay the tax.

Good point! I suppose that they do need a EU base.

In that case, Apple should raise the price of all products offered in the EU zone, to compensate for the illegal tax rape and to offset any loss of profits and income, because of the mob shake down.