Dublin: An investigation had been going on for three years and the commission has ruled that Apple’s tax benefits in Ireland were illegal.
According to the commission Apple had an illegal tax arrangement with Ireland allowing Apple to attribute sales to a head office that did not had the capacity to generate such huge profits and it only existed on paper.
Margrethe Vestager, the Commissioner of the investigation said, “Member states cannot give tax benefits to selected companies – this is illegal under EU state aid rules.
“The Commission’s investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years.”
Both Apple and Ireland have not agreed with the decision and have said that they will appeal against it.
Michael Noonan, finance minister of Ireland said, “I disagree profoundly with the Commission. The decision leaves me with no choice but to seek cabinet approval to appeal. This is necessary to defend the integrity of our tax system; to provide tax certainty to business; and to challenge the encroachment of EU state aid rules into the sovereign member state competence of taxation.”
Apple released a statement stating the fact that such a decision will affect jobs, it said, “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.
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.”