As reported yesterday, according to the European Commission, Apple benefited tax contrary to EU state aid rules, and should pay back taxes. An astronomical amount of $ 13 billion , calculated by European officials, sparked worldwide media.
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It should be explained that this is not the Irish, who agreed in 2007 with Apple, demand a refund. He does it for them, and even behind their backs, the Union.
Member States may not allocate tax credits for selected companies, is incompatible with the state aid rules of the EU
– said Margrethe Vestage from the European Commission. Meanwhile, the Irish authorities have established a tax to Apple (and specifically for its Irish subsidiary based in Cork) at the level of 1 percent … and then, in 2014, it is set at the level of … 0.005 percent.
The Government of Ireland: Apple must pay, we do not want the money
Michael Noonan, Ireland’s finance minister, said that Ireland does not want money from Apple. He admitted, however, that from a legal point of view there is no other choice but to appeal the decision of the Union. He also announced that the proceedings in this case will be long – it will take up to four years. He explained that the Apple has to pay – 13 billion euros, which will be deposited in a special account until the close of the proceedings.
“The Irish Times”: “Take the money and let’s change Ireland.”
largest Irish daily calls for reconciliation the decision of the Union. Editors ‘Irish Times’ lists, which could be built with the money recovered from the American giant, twenty hospitals, a new line of the Dublin tram (the most important means of public transport in Dublin), to build traction Metro-North, building of social houses. Ireland would be even afford to dispense with part of the taxes.
$ 13 billion for the country inhabited by less than 5 million people, the country, which is still struggling with the effects of the 2008 crisis (Ireland is heavily linked economically USA), it is not to be underestimated.
Fig. Irish Times
Part of Irish politicians share this view. Matt Carthy, a representative having the independence tradition of Sinn Féin, who sit in the European Parliament, expressed quite bluntly their expectations for the Union’s decision:
Give our money!
– he said.
White House: it is money US citizens
White House spokesman commented on the decision of the Union in a fairly sharp way:
This transfer of income from US taxpayers to Europe.
– said in a statement quoted by Tech Post.
Tim Cook: It is harmful and unfair
President of Apple sent a letter to the European Commission, which advises that Cork was chosen as an investment destination already 36 years ago. Apple opened its first subsidiary in 1980, employed 60 people and began to help in recovering from the crisis.
STEPHEN LAM / REUTERS / REUTERS
Apart from the obvious head in Apple the most severe and harmful effects of this penalty will be associated with investment and job creation in Europe. Using the logic of the Commission every company in Ireland and Europe is suddenly faced with the threat to levy tax according to the law, which never existed.
– writes Cook quoted by The Verge.
USA: “This retroactivity”
Kara triggers an avalanche of comments across the ocean. Representatives of the US authorities are not satisfied with the decision of the EU.
We believe that the tax imposed by the Commission, which runs backwards, is not right. It’s against the legal principles applicable in the Member States.
– said representatives of the US financial authorities quoted by the “Irish Times”.
The US authorities herald also problems that can bring the decision of the EU authorities.
The actions of the European Commission may jeopardize foreign investment, worsen the business climate in Europe, weaken the spirit of the economic partnership between the US and the EU.
– add in the rest of the comment.
Election: EU may curb the tricks tax .
Tomasz Bielecki of Election takes a similar view. The Union ends an era.
Tax evasion by multinationals is an annoying side effect of globalization. [...] The rules aimed at unlawful State aid can become the strongest weapon of the EU in the fight against tax evasion. Perhaps [...] This team will curb tax tricks.
The decision of the European Commission seems to be shocking, because the amount you Apple has to pay is really substantial, even for such a giant. EU authorities conducting similar actions against other US companies: Google, Starbucks (registered in the Netherlands), Microsoft, Amazon (registered in Luxembourg).
Change the policy observes the Irish Times concluding that apparently used for decades the policy of tax relief has to go to the past.
Apple: the greatest innovator in the field of tax evasion …
Dispute with the European Union was to be expected, because the procedure is controversial from Apple years.
Apple pioneered the accounting technique called “Dual Irish-Dutch Sandwich,” which reduced taxes by transferring profits through subsidiaries in Ireland and the Netherlands to the Caribbean. Today, this tactic is used by hundreds of other corporations – some quite directly imitated Apple. “
– reported in 2012, Wall Street Journal.
Fig. In Icons / sxc.hu / Robert Kędzierski
The decision of the European Commission is certainly the announcement of the new policy concerns.