Apple Forced to Pay €13bn in Back Taxes
quietus writes:
The European Court of Justice has ruled that Apple has gotten an unfair tax advantage by the Irish tax authorities over the period 1991 to 2014.
During this period, Apple only paid taxes in the European Union through 2 subsidiaries in Ireland, Apple Sales International and Apple Operations Europe. Both companies were granted exemption tax rules by the Irish government in 1991 and 2007. As a result of the allocation method endorsed in these tax rulings, Apple only paid an effective corporate tax rate that declined from 1% in 2003 to 0.005% in 2014 on the profits of Apple Sales International.
This selective tax treatment of Apple in Ireland is illegal under EU state aid rules, because it gives Apple a significant advantage over other businesses that are subject to the normal national taxation rules, according to the European Commission.
After a long legal battle, the European Court of Justice has now ruled that this viewpoint of the Commission is correct, and Apple needs to pay illegal tax benefits worth 13 billion, plus rent, to the Irish authorities.
There is no appeal possible to this decision.
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