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Wednesday, 31 August 2016

Irish cabinet considers appealing against Apple tax ruling


Michael Noonan
 
The Republic of Ireland's Cabinet is meeting to discuss the European Commission's decision that Ireland granted undue tax benefits of up to €13bn (£11bn) to Apple.
Finance Minister Michael Noonan has said the Irish Government will appeal against the ruling.

The Irish Government has said it "disagrees profoundly with the commission's analysis".
"Ireland did not give favourable tax treatment to Apple," it added.

"Ireland does not do deals with taxpayers. No fine or penalty has been levied against the Irish State.
"This decision has no effect on the 12.5% rate of corporation tax and is not about Ireland's wider corporation tax regime."

Thirteen billion euros is approximately equivalent to a quarter of what the Irish government spends per year, and what it spends on health in total.

The Republic's government is a minority one, with Fine Gael being propped up by independents.
It is not clear whether the Independent Alliance cabinet members will vote to appeal the decision.
Apple itself is appealing against the decision, saying: "The European Commission has launched an effort to rewrite Apple's history in Europe, ignore Ireland's tax laws and upend the international tax system in the process.

"The commission's case is not about how much Apple pays in taxes, it's about which government collects the money. It will have a profound and harmful effect on investment and job creation in Europe.


Image result for apple logo

"Apple follows the law and pays all of the taxes we owe wherever we operate. We will appeal and we are confident the decision will be overturned."
The appeal will be made first to the General Court of the European Union in Luxembourg and then to European Court of Justice.

Mr Cook has published message on the company's website reiterating the organisation's commitment to Ireland.

"We plan to continue investing there, growing and serving our customers with the same level of passion and commitment.
He added: "we firmly believe that the facts and the established legal principles upon which the EU was founded will ultimately prevail".

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