Apple, Ireland fight $14.5B European Commission ruling
The EU’s ruling body said the company purposefully skirted corporate taxes and owes the Irish government. CEO Tim Cook says the decision could affect jobs in that country.
The company’s international operations hit a bump recently after the European Commission—the EU’s governing body—ordered Apple to pay back roughly $14.5 billion, plus interest, in taxes to the Irish government.
The ruling was made after an investigation into what some are calling a “sweetheart deal” with Ireland from 2003 to 2013.
Apple paid tax at 1%, or less, on profits attributed to its subsidiaries in Ireland, well below the 35% top rate of corporate tax in the United States and Ireland’s 12.5% rate.
That prompted complaints by both European and U.S. lawmakers, who argued that Apple had been given an unfair advantage in exchange for creating jobs in Ireland. CEO Tim Cook was even called to testify on Apple’s tax arrangements with Ireland before a Senate committee in 2013.
The Irish Times further explained the ruling:
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