Wednesday, August 31, 2016

European Commission: Apple has to pay 13 billion back taxes. The company promises to appeal – Polish Radio

The investigation on the granting by Ireland, where Apple has its European headquarters, the tax benefits was conducted by the Commission since 2014. It centered on two agreements negotiated by Apple and the representatives of Ireland in 1991. And 2007. Thanks to the company could avoid paying billions of dollars in taxes.

 

Apple promises to appeal against the sanctions on EU tax

 

electronics company Apple announced the submission of a court appeal of the announced on Tuesday the European Commission decision declaring him guilty of evasion of taxes and ordering the payment of this account of the amount which may exceed 13 billion dollars.

Also, Irish government denied justifying this decision thesis that gave Apple the tax advantages against the Union rules on state aid.

“Złożymy appeal and we are confident that the decision will be canceled” – said the company. He criticized, however, that the European Commission has set up here over the Irish tax legislation and international tax system. Proceedings Brussels seriously hurt investment and job creation in Europe – warned Apple.


 

Ireland needs to recover from the Apple 13 billion

Presented on Tuesday in Brussels, the conclusions of an investigation that now Dublin will have to recover from an American manufacturer of mobile approx. 13 billion euros unpaid taxes (plus interest) for the period of 2003-2014.

– Member States may not grant benefits selected companies. This is contrary to EU state aid rules. The Commission’s investigation showed that Ireland has conceded illegal tax benefit Apple, which allowed the company to pay for many years to lower taxes than other companies – said at Tuesday’s press conference, EU Commissioner. Margrethe Vestager competition.


 

An appeal to the court announces the Apple and the Irish authorities

The Irish authorities in response to the decision of the Commission stated that it did not agree with her and – just like the same Apple – announced an appeal to court. The island fears losing investors who can look for other places where the jurisdiction of the European Commission will not be reached. As argued in a statement the Finance Minister of Ireland Michael Noonan, Apple paid the tax due in his country did not benefit from state aid.

However, according to the Commission two individual interpretations of tax law of 1991. And 2007. Issued by the Ireland to Californian “significantly and artificially” undercut amount of tax deducted by the corporation in the country.

 

“From each 1 million euro profit a company paid 500 euros taxes”

The effective tax rate, which gains wypracowywanych in Europe paid Apple, was 1 percent. in 2003. to fall in 2014 to 0.005 per cent. – To show it in context: of every million euro profit a company paid 500 euros taxes – Vestager stressed.

This enabled the Irish decisions regarding the method of calculating income tax of the company. Through internal transfers Apple could invest the profits from all over Europe in companies in Ireland, Apple Sales International and Apple Operations Europe.

The Irish agreed to almost all revenues from sales recorded by both companies were internally assigned “siedzibom main”. Commission’s investigation showed that these “headquarters” existed only on paper and were not able to generate any income. Moreover, the Irish legislation allowed to “headquarters” were not taxed in any country (these regulations have been changed).

Commissioner. Competition pointed out that the 13 billion euro, referred to in this case, not a punishment to be paid by Apple, only the overdue tax, which must be recovered.

If the Commission decision is confirmed by the court, Apple will have to settle with what you tax. With the June report of the company shows that it has in cash, cash equivalents and marketable securities 231.5 billion.


 

IAR / PAP, Celebrating

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