Ireland granted undue tax benefits to Apple
The European Commission (EC) has concluded that Ireland granted undue tax benefits of up to Euro 13 billion to Apple, following an investigation. This is illegal under European Union (EU) state aid rules, as it allowed Apple to pay substantially less tax than other businesses, and so the EC has stated it is time for Apple to pay back the cash it owes.
Following an in-depth state aid investigation launched in June 2014, the EC has concluded that two tax rulings issued by Ireland to Apple have substantially and artificially lowered the tax paid by Apple in Ireland since 1991.
Commissioner Margrethe Vestager [pictured], in charge of competition policy, 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.
“In fact, this selective treatment allowed Apple to pay an effective corporate tax rate of 1% on its European profits in 2003 down to 0.005 per cent in 2014.”
Ireland must now recover the illegal aid from Apple.