This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.independent.co.uk/news/business/news/apple-tax-deadline-ireland-missed-a7555806.html
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Apple misses deadline to pay €13bn to Ireland in illegal tax benefits | Apple misses deadline to pay €13bn to Ireland in illegal tax benefits |
(about 2 hours later) | |
Apple has missed the deadline to pay €13bn (£11bn) it owes to the Irish government in tax benefits, the European Union’s competition said on Tuesday. | |
In response to a question to CNBC during a press conference in Dublin, Margrethe Vestager, the EU’s competition commissioner admitted that collecting the money was a “tricky thing to do” because the sum was so large. | In response to a question to CNBC during a press conference in Dublin, Margrethe Vestager, the EU’s competition commissioner admitted that collecting the money was a “tricky thing to do” because the sum was so large. |
Ms Vestager said that the commission is working with Irish authorities to recover the unpaid taxes, according to CNBC. | Ms Vestager said that the commission is working with Irish authorities to recover the unpaid taxes, according to CNBC. |
“It's a tricky thing to do because it's a large sum so of course you have to figure out how to do that. It's not as an escrow account in some of the other cases where it might be €25 or €30m […] and therefore I do respect that it's a complicated matter and it may take a little more time,” she added. | |
European authorities have accused Ireland of helping Apple to avoid paying to pay high taxes by means of a so-called “sweetheart deal” that is in breach of EU rules. | |
In August, the commission said the deal devised by the Irish government had allowed Apple to pay tax of just 0.005 per cent in 2014 and an average rate of 1 per cent over many years. | In August, the commission said the deal devised by the Irish government had allowed Apple to pay tax of just 0.005 per cent in 2014 and an average rate of 1 per cent over many years. |
The deadline for Ireland to recover the money into an escrow account was January. | The deadline for Ireland to recover the money into an escrow account was January. |
However, the issue has proved complicated as both the Irish authorities and Apple have repeatedly denied breaching state aid rules. Both have separate appeals pending against the European Commission’s findings. | However, the issue has proved complicated as both the Irish authorities and Apple have repeatedly denied breaching state aid rules. Both have separate appeals pending against the European Commission’s findings. |
The Irish finance ministry said the European Commission had misunderstood both Irish law and had exceeded its powers, seeking to breach Ireland’s sovereignty in national tax affairs. | The Irish finance ministry said the European Commission had misunderstood both Irish law and had exceeded its powers, seeking to breach Ireland’s sovereignty in national tax affairs. |
The ruling means Ireland stands to gain an additional £11bn from those unpaid taxes but Ireland's decision to appeal - rather than take the money - is based around its economy's dependence on foreign companies. | The ruling means Ireland stands to gain an additional £11bn from those unpaid taxes but Ireland's decision to appeal - rather than take the money - is based around its economy's dependence on foreign companies. |
The country has structured its economy around attracting multinationals with its low corporate tax rate. | The country has structured its economy around attracting multinationals with its low corporate tax rate. |
About 1,000 firms, including Facebook and Google, have their European headquarters in Ireland, due mainly to its 12.5 per cent headline rate of corporate income tax – the second-lowest in the EU. | |
The Commission has become much more aggressive in its approach to the agreements struck between multinational companies and EU member states. Previously it has ordered Dutch authorities to recover €30m from Starbucks with a similar amount due to Luxembourg from Fiat Chrysler. | The Commission has become much more aggressive in its approach to the agreements struck between multinational companies and EU member states. Previously it has ordered Dutch authorities to recover €30m from Starbucks with a similar amount due to Luxembourg from Fiat Chrysler. |
Previous version
1
Next version