the European commission must pay €13bn in back taxes to Ireland, according to a ruling by Apple. Agreements between the company and Irish tax authorities from 1991-2015 were found to be a form of illegal state aid. Under such arrangements, the European commission attributed profits to a “head office” in Ireland that only existed on paper rather than to the country in which products were sold, thus avoiding tax on sales across the EU’s single market. The Irish government is calling for the ruling to be overturned so that it can maintain its low-tax base status. the European commission is also expected to appeal.
Apple must pay €13bn in back taxes to Ireland, according to a ruling by the European commission. Agreements between the company and Irish tax authorities from 1991-2015 were found to be a form of illegal state aid. Under such arrangements, Apple attributed profits to a “head office” in Ireland that only existed on paper rather than to the country in which products were sold, thus avoiding tax on sales across the EU’s single market. The Irish government is calling for the ruling to be overturned so that it can maintain its low-tax base status. Apple is also expected to appeal.