Apple Must Pay Billions for Tax Breaks in Ireland, EU Orders

Countries go to great lengths to attract jobs to their shores, and companies do the same to avoid taxes. The European Commission has ordered Apple, the world’s largest company in terms of market value, to pay €13 billion in back taxes and argues that Ireland’s tax incentives extend an unfair advantage. Apple assigned profits of Irish subsidiaries to a “head office” to reduce taxes, report James Kanter and Mark Scott for the New York Times. The US has taken steps in recent years to curtail tax inversions, US firms relocating headquarters in pursuit of low taxes, and the commission ruled that Apple’s tax bill could be reduced if the firm paid more US taxes. The article describes a contradictory US response: “American officials have warned that the commission is overstepping its power given that taxes are typically left to national governments to oversee and that European officials should not retroactively issue penalties in past tax rulings,” yet “They also emphasized that such cases undermine continuing efforts to overhaul global policies and create measures to curtail tax avoidance.” The European Commission is investigating other multinationals. – YaleGlobal

Apple Must Pay Billions for Tax Breaks in Ireland, EU Orders

European Commission orders Apple to pay €13 billion in back taxes, after finding that Ireland extended an unfair tax break
James Kanter and Mark Scott
Tuesday, August 30, 2016

Read the article.

Read the release from the European Commission.

© 2016 The New York Times Company

Add new comment

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.