Apple’s £11bn tax row
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Technology giant Apple has been ordered to pay €13 billion (£11 billion) to the Irish government in a record ruling by the European Commission (EC). The ruling comes as the company was paying as little as €50 on each €1 million of profit.
A special scheme to direct profits through Ireland has been ruled as an illegal act, virtually undermining the Irish tax system. In response to the EC’s demands, both Apple and the Irish government are contesting the bill causing just a bit of confusion. The reason for Ireland appealing the decision is because it would mean that Ireland’s tax system was fundamentally flawed and Michael Noonan, the financial minister, said that he “profoundly” disagrees with the ruling.
The sum to be paid by the US company is forty times larger than any previous ruled by the EC in such a case. Commissioner Margrethe Vestager said: “Member states cannot give tax benefits to selected companies – this is illegal under EU state aid rules”.
In a statement from Apple, the company claimed to be confident of winning the appeal and said that losing it would bring a “profound and harmful effect on investment and job creation in Europe”.