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European Commission Rules That Apple Pay Billions Of Euros In Back Taxes

The European Commission has ordered Apple Inc. to pay billions of dollars in back taxes owed to the Republic of Ireland.

European Commission Rules That Apple Pay Billions Of Euros In Back Taxes


Tim Cook, Apple chief, has said that the ruling by the European Commission is maddening and is politically motivated.

Speaking to Irish broadcaster RTE, Mr. Cook said that his company had not received any preferential treatment in terms of tax breaks in Ireland

The Commission ruled that Apple received up to £13 bn in tax benefits that were actually illegal.

Mr. Cook further added that he was absolutely confident that the Commission’s ruling would be overturned on appeal.

On Tuesday, the Commission asserted that Ireland had issued Apple with unwarranted tax benefits of as much as £11bn.

Speaking to RTE, Mr. Cook said, “It is maddening, disappointing and clear that this ruling is politically motivated and has no basis in law. Unfortunately, it is one of those things we have to work through.”

He added, “When you are accused of doing something that is so foreign to your values, it brings an outrage in you and that is how we feel. Apple has always been about doing the right thing.”

Mr. Cook adamantly disputed the Commission’s claims that the company has essentially paid a corporate tax rate of only 0.005% or an equivalent of € 50 out of every €1 million Apple makes from its subsidiaries in Ireland since 2014.

Apple chief insisted that these are false figures pointing out that in 2014 alone the company paid up to $400m to Ireland based on the country’s 12.5% income tax rate.

The European Commission has made it clear that the 0.005% rate applied to one of the company’s subsidiaries in Ireland.

The Commission further said that Apple Sales International made payments for research totalling $2 billion to Apple Inc. in 2011, an amount that significantly increased in 2014.

Effectively, Apple paid a tax rate of 0.005% on the profits of Apple Sales International in 2014.

The Commission said, “Apple has more subsidiaries in Ireland and the tax affairs of other of its subsidiaries have not even been the focus of this investigation.”

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