Sunday, 4 September 2016

EU finds Apple tax dodging arrangements illegal - demands 13billion back taxes


In what is gaining world attention as a precedent case, the European Commission has found that the tax avoidance arrangements Apple has with Ireland are illegal under EU rules. They say that Apple should pay back around 13billion Euros. Not a small sum.
The European Commission has concluded that Ireland granted undue tax benefits of up to €13 billion. This is illegal under EU state aid rules, as it allowed Apple to pay substantially less tax than other businesses.

Following an in-depth state aid investigation launched in June 2014, the European Commission has concluded that two tax rulings issued by Ireland to Apple have substantially and artificially lowered the tax paid by Apple in Ireland since 1991.

Commissioner Margrethe Vestager, in charge of competition policy, said: "Member States cannot give tax benefits to selected companies – this is illegal under EU state aid rules. The Commission's investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years. In fact, this selective treatment allowed Apple to pay an effective corporate tax rate of 1 per cent on its European profits in 2003 down to 0.005 per cent in 2014."

Ireland must now recover the illegal aid. European Commission
US people against tax evasion such as this have applauded the EU's findings, saying that Apple may well also owe the US people up to $60billion. Also not a small sum. In fact a staggering sum, giving some indication of the level of multi-national tax evasion presently occurring. 
“We strongly applaud the European Commission for bringing this state-aid case against Ireland. Ireland’s secret tax deals with Apple enabled the corporation to dodge many billions of dollars owed on its worldwide operations—money owed to taxpayers both in the U.S. and in countries across Europe. 

“Apple has more than $215 billion in profits stashed offshore on which it has paid less than a 5% tax rate. Most of these profits are in tax havens, mainly Ireland, which is why Apple could owe the American people more than $60 billion in taxes. Apple owes taxes to European governments on the portion of these offshore profits that were legitimately earned in Europe. Apple will get credit against its U.S. taxes for any additional taxes it pays Ireland as a result of this E.C. enforcement action. Americans for Tax Fairness
Sum Of Us has a world petition going where you can demand Apple cough up the dough here.