BRUSSELS/DUBLIN – The European Commission ordered Apple Inc. to pay Ireland unpaid taxes of up to 13 billion euros ($14.5 billion) on Tuesday as it ruled the firm had received illegal state aid.
Apple and Dublin said the U.S. company’s tax treatment was in line with Irish and European Union law and they would appeal the ruling, which is part of a drive against what the EU says are sweetheart tax deals that usually smaller states in the bloc offer multinational companies to lure jobs and investment.
The U.S. feels its firms are being targeted by the EU and a U.S. Treasury spokesperson warned the move threatens to undermine U.S. investment in Europe and “the important spirit of economic partnership between the U.S. and the EU”.
Starbucks Corp has been ordered to pay up to 30 million euros ($33 million) to the Dutch state, while Amazon.com Inc and McDonald’s Corp are also under investigation by the Commission, the EU’s executive arm.
EU Competition Commissioner Margrethe Vestager questioned how anyone might think an arrangement that allowed Apple to pay a tax rate of 0.005 percent, as Apple’s main Irish unit did in 2014, was fair.
“Tax rulings granted by Ireland have artificially reduced Apple’s tax burden for over two decades, in breach of the EU state aid rules. Apple now has to repay the benefits,” Vestager told a news conference.
Analysts said the size of the claim underlined the Commission’s aggressive stance, but since each case involves different circumstances and tax rules, lawyers said it was hard to see if further big claims were any more or less likely.
Apple, which had more than $200 billion in cash and readily marketable securities at the end of June, is likely to see the case drag out for years in EU and possibly Irish courts.
The EU’s ruling challenges the way that Ireland agreed to tax the profits of Irish registered Apple subsidiaries, through which most of its non-U.S. profits flowed.
HARARE,– Telecel Zimbabwe, which is currently embroiled in a legal battle with government over the cancellation of its operating licence, says it has started negotiations with the government to resolve ...
Twitter Inc disappointed investors again, saying it saw no growth in average monthly active users in the fourth quarter - the first flat quarter sequentially since the company's 2013 initial public ...
HARARE – Government – through the Ministry of Information Communication Technology, Postal and Courier Services — has effectively cancelled the agreement that has allowed Telecel Zimbabwe to operate, but it ...
Janet Jackson’s been spotted with her baby bump for the first time since news broke of her pregnancy. Sure to put surrogacy rumours to rest, pictures have emerged of Jackson in comfortable, loose fitting gear […]
After a year as host of the US satirical television programme The Daily Show, the charismatic South African Trevor Noah, seems to have cemented his place on the prime-time slot. The much-loved show was hosted […]
October is set to be a busy month with a number of gigs featuring international artists lined up. First will be the Musica Festival, then the much awaited Morgan Heritage show, followed by the Zimpraise […]
The wait is finally over for many Zimbabweans, and those abroad, who were looking forward to the release of the much hyped feature film, ‘Escape’, as the intriguing masterpiece is set to premiere on Tuesday […]