Apple Ordered To Pay $14.5 Billion In "Illegal" unpaid EU Tax Benefits, Stock Falls 2%

[FunkyMike]

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As the FT reported first yesterday, the EU has judged that the Irish government granted Apple "undue tax benefits" and moments ago announced the specific size of the penalty when it ordered the tech giant repay up to €13 billion ($14.5 billion) plus interest. According to the EU, the Irish deal slashed Apple taxes from 2003 to 2014, and allowed Apple to avoid tax on almost all EU profit, lowering its effective tax rate on European profits from 0.005% to 1%.

 

“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,” EU Competition Commissioner Margrethe Vestager says in e-mailed statement from Brussels. “This is illegal under EU state aid rules, because it allowed Apple to pay substantially less tax than other businesses. Ireland must now recover the illegal aid,” the commission said in a statement.

 

Apple and the Irish government have both vowed to fight the decision.

 

As a result of the announcement, AAPL stock was doen 2% in European trading.

 

The full EU press release is below:

 

State aid: Ireland gave illegal tax benefits to Apple worth up to €13 billion

 

...

 

http://www.zerohedge.com/news/2016-08-30/apple-ordered-repay-145-billion-illegal-tax-benefits-stock-falls-2

Apple ordered to repay record €13 bn to cover unpaid EU tax  amendment title to make it clearer

[+John. Subscriber¹]

That's like 6% of Ireland's GDP! Smart move, lure Apple in, give them tax breaks, then blame it on the EU and demand they pay back the tax.

[Michael Scrip]

Didn't Steve Jobs go into Ireland back in the 80's ?

 

I can't believe it took the EU this long to catch them!

[technord]

The EU is on the ropes and lashing out.  Ireland does not agree with the ruling.  Apple will appeal, no doubt about it.

[Tomo]

So Ireland entice Apple to do business in their country at a low tax rate, the EU think well that's not very fair we'd like a slice of that too! I suppose they need a new revenue stream once the UK stops paying in.

[FloatingFatMan]

19 hours ago, John. said:

That's like 6% of Ireland's GDP! Smart move, lure Apple in, give them tax breaks, then blame it on the EU and demand they pay back the tax.

Ireland also disagree with the ruling and plan to appeal it.

 

This folks, is what happens when you surrender your national currency and give another political entity control over your economy.