Breaking News

Ireland Must Recover $14.6 Billion from Apple
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Apple in Ireland

Summary: Ireland has been placed responsible for recovering over $14 billion in unpaid tax from Apple.

In landmark ruling by the European Union, Apple must turn over $14.6 billion in unpaid taxes to Ireland. The tax ruling is the largest the organization has ever made against a single company and may open doors for how other American companies are treated in Europe.

  
What
Where


With the announcement, Apple shares dropped nearly 3 percent but have since recovered. Apple will of course appeal the ruling, arguing that the decision upends the international tax system and damages jobs and investments in Europe.

The EU law administration, the European Commission, said that Ireland had given illegal state aid to apple for over 20 years to help them lower their tax bill. Commissioner Margrethe Vestager, Europe’s top antitrust official said, “EU member states cannot give tax benefits to selected companies – this is illegal under EU state aid rules.”

Read Apple Paid Less Than 2% Corporate Tax Outside of the United States.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The United States, on behalf of Apple and other U.S. companies responded, “The Commission’s action could threaten to undermine foreign investment, the business climate in Europe, and the important spirit of economic partnership between the U.S. and the EU.” They argue that retroactive tax assessments are unfair.

Apple was paying a 1 percent tax on profits credited to its affiliates in Ireland. The typical top corporate tax rate is 35 percent in the United States and 12.5 percent in Ireland. European and U.S. lawmakers were upset that Apple was given an advantage in exchange for creating jobs in the country.



See Apple May be Forced to Pay Back Millions in Taxes.

The unpaid tax bill covers from 2003 to 2014 but luckily Apple as over $231 billion in cash on their balance sheet to make the blow less damaging.

Apple has created and sustained over 1.5 million jobs in Europe. Ireland will also appeal the decision, declaring that Apple has paid what they owe. Ireland has one of the lowest corporate taxes in Europe in an effort to attract companies to their country.

Starbucks and Fiat Chrysler are in the same boat as Apple. They have been required to pay back million in taxes because of deals they had with other European countries that saved them money. Amazon, McDonalds, and Google are facing inquiries into their tax arrangements in European countries.

Do you think it is fair for the European Commission to dictate what tax arrangements countries make with American companies? Tell us your thoughts in the comments below.

To learn more about the tax arrangements, read Apple Cuts Tax Bill by Billions with Profit Allocation Methods.

Photo: iradio.ie



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Corporate, Mergers and Acquisitions and Securities Associate Attorney

USA-NY-New York City

New York City office of our client seeks corporate, mergers and acquisitions and securities associat...

Apply Now

Business Litigation Attorney

USA-CA-Santa Monica

Santa Monica office of our client seeks business litigation attorney with 1-3 years of experience. T...

Apply Now

Intellectual Property Litigation / Enforcement Associate Attorney

USA-CA-San Francisco

San Francisco office of our client seeks intellectual property litigation / enforcement associate at...

Apply Now

Eminent Domain Attorney

USA-TX-Richmond

Richmond office of our client seeks eminent domain attorney with 5+ years of experience. The candida...

Apply Now

RELEVANT JOBS

Hotline & Training Managing Attorney (IMMIGRATION)

USA-NY-New York City

The Hotline & Training Services Managing Attorney will guide, develop, and supervise the Hotline sta...

Apply now

Associate Attorney

USA-CA-Sacramento

A civil plaintiff’s law firm is hiring for an associate attorney, preferably with strong resea...

Apply now

Associate Attorney

USA-TX-San Antonio

One of Texas\'s largest Personal Injury Law firm seeks a highly motivated associate attorney with 3-...

Apply now

Associate Attorney

USA-TX-Dallas

One of Texas\'s largest Personal Injury Law firm seeks a highly motivated associate attorney with 3-...

Apply now

SEARCH IN ARCHIVE

To Top