Moscow, September 18 — “News. Economy”, Ireland received from the us Apple 14.3 billion euros in penalties by the authorities of illegally obtained company tax subsidies, as well as relevant interest, by the decision of the European Commission (EC.
The European Commission is ready to close court proceedings for allegedly unpaid taxes by Apple in Ireland after the full payment of the requested amount, was announced on Twitter by European Commissioner for competition Margrethe Vestager.
“Today the Irish Finance Minister Donohue confirmed full payment of $14 billion in unpaid taxes Apple. That’s good. We can now close the proceedings on terms of payment,” said Vestager.
The Irish Finance Minister Pascal Donohue announced Tuesday that the government sought to Apple’s 13.1 billion euros of unpaid taxes and EUR 1.2 billion in interest.
Previously the Irish government and Apple have agreed that the company will transfer the funds in a special escrow account for the period of consideration by the European court of appeals, Apple and Irish authorities to the European Commission’s decision.
As reported, in August 2016, the European Commission demanded from Apple to reimburse the government of Ireland illegal tax subsidies. Apple appealed the decision in court, and its head Tim cook called it political and unfair and stated that the approach of the EC will affect future Apple decisions about investments in Europe. The penalty set by the European Commission, expired on 3 January 2017.
Donohue said Tuesday that the Irish government disagrees with the decision of the European Commission in the case of Apple and “seeking its annulment in the European courts”, writes the Financial Times.
As argued by the EC, Ireland gave Apple illegal tax breaks between 2003 and 2014, which led to a significant reduction of company’s tax payments. According to the European Commission, “the selective approach of the Irish authorities has ensured the decline in the effective rate of tax on the profit Apple with 1% of their profits in Europe in 2003 and to 0.005% in 2014.”
Low tax rates on corporate profits — the cornerstone of economic policy of Ireland, reports “Interfax”. The basic rate of tax is 12.5% and is the lowest among the countries of Western Europe. Because of this in Ireland are units of more than 700 large U.S. companies created in a country of 140 thousand jobs.
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