The European Commission has concluded that the US IT giant Apple has received illegal state aid from the government of Ireland, the news agency Reuters.
Ireland denies that the country’s tax system constitutes illegal state aid.
the decision could have serious consequences for taxation of multinational corporations in other countries, claiming interest organization Tax Justice Networ – Norway
the European Commission has since 2014 investigated Apple’s tax treaties with Ireland. The amount of 13 billion euros (120 billion. NOK) covers the period from 2003 to 2014.
Illegal State Aid
The European Commission believes the low tax rate that Apple has benefited from in Ireland constitutes illegal state aid because the company received a benefit that has not been available to other companies.
– This decision sends a clear signal. Member States may not grant unjustified tax advantages to selected companies, said EU Competition Commissioner Margrethe Vestager.
Apple has its European headquarters in Ireland.
Will appealed
Ireland’s Finance Minister Michael Noonan said he strongly disagrees with the decision.
– Our tax system is based on strict enforcement of the law, says the Irish Minister.
Apple announced Tuesday that the European Commission’s decision is appealed to the European Court of Justice.
– Apple obey the law and pay all the taxes that we owe where we operate. We are going to appeal and we are sure that the decision is going to be set aside, writes the American company in a statement.
Have paid less than 2 percent tax to Ireland
Apple has paid 2 percent – or less – in taxes in Ireland and had attractive tax agreements with authorities in more than two decades.
the American big bank JPMorgan has previously estimated that Apple might have to pay 19 billion euros in penalty tax. Past estimates have been between EUR 1 billion and 8 billion euros.
Last year had Apple to pay 318 million euros in penalty tax after being investigated for tax fraud in Italy.
USA – EU acts as a supranational taxman
US criticizes EU
last week sent Treasury of the United States back hard against the European Commission’s investigation of Apple and other companies, lucrative tax deals in Europe. Americans believe that agreements are a matter between the companies and the individual countries.
Finance Ministry accuses the European Commission to act as “a supranational tax collector,” and suggests also that the EU goes especially for US companies. European Commission refuses on his side for this and points out that the law is equal for everyone.
The European Commission has previously explained that tax treaties between Dublin and Apple is similar to State aid and therefore violate EU reglerom a free internal market .
Ireland removed loopholes in tax
“Double Irish”
Irish authorities have previously stated that they are confident that the agreements with Apple is not breach of rules State Aid. Yet they have removed the loophole that makes it lucrative for Apple to operate in the country.
Multinational corporations have been able to use a system known as “double Irish” to move profits from one country to another, where the tax is lower.
Apple can still benefit from the scheme, the change in the tax rules applicable in the first place new companies.
can have major consequences
European Commission decision can have major consequences for international taxation of companies, argues Sigrid Klæboe Jacobsen Tax Justice Networ – Norway.
the relationship between the US and the EU are affected by the decision, she says.
– We has for several years seen that large multinational companies have organized themselves in a way that makes them virtually pay zero tax, which for most people seems unfair and wrong, but claimed to be within the law. Now we see that more and more countries, and today therefore also the EU is starting to challenge the legality of these structures, she writes in an e-mail.
No comments:
Post a Comment