Under the legislation on state aid, the EU antitrust considers illegal the Apple-Irish agreements. Cupertino will have to return 13 billion euro in unpaid taxes. The serviizo Celia Guimaraes
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Apple will have to return a record 13 billion euro in unpaid taxes. This is because the tax agreement signed by the company of Cupertino with Ireland was deemed illegal, according to the rules on state aid. This was established by the European Antitrust Authority, which now wants to return to Ireland the amounts relating to tax benefits from 2003 to 2014, plus interest. In fact, with the preferential agreement Ireland has allowed Apple to just pay 1% tax on profits in the first year and below this threshold in subsequent years.
It was a situation was created ” that did not correspond to reality, “said EU Commissioner for Competition, Margrethe Vestager. The taxable profits concerned two Irish companies Apple Group, namely Apple Sales International and Apple Operations Europe. “Almost all sales profits recorded by the two companies were attributed to ‘headquarters’, but the Commission has shown that such ‘headquarters’ existed only on paper,” said Vestager. “The United States can not achieve tax benefits to companies selected, this is contrary to EU rules,” said EU Commissioner, stressing that the sum claimed to Apple “is not a fine, it’s unpaid taxes that must be paid “.
Immediate reaction of the Irish Finance Minister Michael Noonan, who has declared himself in profound disagreement with the Commission. Taxation takes place within legal limits, he said, in announcing the appeal. Apple also will appeal against the decision of the European Commission. And while fears repercussions on employment. The ruling says Cupertino, will have adverse effects on investment and jobs in Europe. “We are confident that the decision will be overturned,” it said in a statement.
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Cyclone taxes that hit on Apple begins at his home in May 2013. the investigation of the US Senate, which assumes “tax strategies to try ‘Holy Grail’ avoidance ‘and the creation of special divisions in Ireland, a ploy to avoid paying taxes. While not being accused of illegal actions, Apple is the subject of harsh criticism from the US Congress, who suspects the use of “tax alchemy” and “” shell companies to avoid paying taxes in the United States. Cupertino reply point by point, with CEO Tim Cook who, called to testify before the Senate permanent Subcommittee investigation, said: “We are a company with principles and values. And we pay taxes owed, every dollar. “
Apple – according to a Senate report – in four years has ‘saved’ at least $ 44 billion of taxes on offshore income, subtracting – by divisions created in Ireland – about 74 billion dollars of taxable income of reach by the Internal revenue Service (IRS), the agency of the American revenue.
the divisions, the report said, they are managed by some top Cupertino managers and therefore did not tax resident anywhere. Apple Operations International, is the complaint, did not submit any tax return in any country between 2009 and 2012, despite an income of $ 30 billion over the same period .
Apple Sales International, other division without tax residence, he paid virtually zero taxes on 74 billion dollars of income between 2009 to 2012, with only 11 million paid in 2011 to 22 billion dollars in profits.
the hearings, chaired by senators John McCain and Carl Levin, have shown that the two branches of Apple in Ireland had paid taxes to 2% or even less on profits over many years. The taxable corporation, according to Irish law, is 12.5%.
In 2014, the European Commission announces that it is to kick off a formal investigation into the Apple tax system Ireland, the Netherlands and Fiat Starbucks and Amazon in Luxembourg, but actually the preliminary investigation on the Apple tax issues in Ireland dating back to the previous year. According to expert assessments, the legal battle between Apple and the European Union will go on for many more years.
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