EU official ruled Tuesday, asked Apple to Ireland to pay 13 billion euros (about 14.5 billion US dollars) in tax arrears, the recovery event in Brussels was authorized to supervise companies in Europe, the largest since a monetary payment.
It is reported that Ireland Government in order to stimulate the development of local economy, lowering the corporate income tax 12.5%, you can give a specific States and specific lower income tax rates even in the area of tax concession, made in Ireland set, subsidiaries of multinational companies the actual tax is much lower than the United States and other European countries.
The EU competition Commissioner said:
Ireland promised tax cuts to Apple, Apple's effective corporate tax rate reduced from 1% in 2003 to 0.005% in 2014.
Apples in Ireland has established two subsidiaries: Apple international sales companies (Apple Sales International,ASI) and the European operating company (Apple Operations Europe,AOE). Apple international sales company is responsible for in European, and Asia-Pacific, and African, area of sales, according to Ireland of special tax arrangements displayed, its allows Apple will Apple international sales company of most profit divided to a a "headquarters", and this "headquarters" and no established in Ireland and other any national, according to Ireland legal, this "headquarters" was depending on for "no nationality company", so without to Ireland tax. Finally, Apple only for a small part of Apple's international marketing company profits to Ireland tax. Data and statistics 2011 Apple international sales company for € 16 billion profit, and Ireland subsidiaries is assigned to profit less than 50 million euros, divided all remaining parts to have tax exempt status "headquarters".
EU officials said that Ireland's tax policy to provide Apple with a huge financial advantage, constituted illegal state aid.
In this regard, Ireland's Finance Minister Noonan (Michael Noonan) against the decision of the EU Commission, he said, Ireland will appeal against the this decision in order to maintain the integrity of the tax system in the country. United States Treasury said asked Apple to pay taxes to the EU was disappointed by the ruling. Meanwhile, Tim Cook, Apple posted an open letter to all read as follows:
Cook's open letter Moschino iPad Air Case
36 years ago, long before the advent of iPhone, iPod and even Mac, Apple, Steve jobs, the establishment of companies operating in Europe for the first time. When the company knew, in order to provide services to European customers, need to be there with a base. So, in October 1980, apples in Ireland opened a factory in Hancock County, with 60 employees.
At that time, Hancock County is suffering from the double whammy of high unemployment and low economic investment. But leaders here have a wealth of human resources, they believe, if lucky enough to succeed, you can achieve growth.
Since then, since we operate in Hancock County, although our own business experienced a period of uncertainty. Today, we in Ireland of workers employed by a total of nearly 6000 people, the vast majority remained in Hancock County, including some of the earliest employees in their company goes global, played a variety of roles. Numerous multinational companies follow in Apple's footsteps, to invest in Hancock County, where local economies are stronger than ever.
Promoting the success of Apple in Hancock County to achieve growth driven by innovative products, they won a customer favorite. In Europe, these products help to create and maintain more than 1.5 million job opportunities, they not only from Apple, but also from the thousands of creative flourish in the Apple app store App developers, manufacturers and other suppliers. Many small and medium enterprises rely on Apple, can provide them with support, we are proud of it.
As a responsible corporate citizen, we also own all over Europe and every community is very proud of the contribution made to the local economy. With the development of our years, we are one of Ireland's biggest taxpayers, the United States's largest taxpayer, the world's largest taxpayer.
For many years, as well as all companies doing business here, we received from Ireland tax guide, teaches us how to properly comply with Ireland tax law. In Ireland we have operated in each country, apples are in accordance with the law, pay all taxes owed.
European Commission take Ireland's tax laws, facts in the international tax system processes, trying to rewrite history of Apple in Europe. Published on August 30, the organization said Ireland permit Apple tax "specialization". This statement lacks factual or legal basis. We have never asked for nor received any special deals. Now, we find ourselves in an awkward position, be requested from the tax paid, and then to Ireland the Government be paid taxes, although we do not owe them anything.
The Commission's move was unprecedented, with serious and wide-ranging effects. It effectively prove to people, the European Commission can replace Ireland tax laws, opinionated, and do whatever they want. Member States of the European Union, which will bring about its sovereignty in tax matters, and of the principle of legal certainty in Europe, dealt a devastating blow. Ireland has said it plans to appeal against the Commission's ruling, Apple will do. We believe that the Commission will withdraw its plan.
Says the root causes, the Commission's decision had nothing to do with Apple paying taxes, but in which the money received by the Government. Moschino iPad Air Case
Taxes on multinationals is complex, but all over the world have recognized a basic principle: the profits of a company shall, in accordance with the company in the business value created by the State to collect. Apple, Ireland and the United States all agree on this principle.
Apple's case, almost all of our research and development is done in California, so most of our profits are in the United States taxation. European companies in the United States business tax is based on the same principles. However, the European Commission now goes back to the past, to change the rules.
In addition to Apple as a clear target, this award will be for the European investment and the creation of employment opportunities have a most profound and harmful impact. In accordance with the Commission's theory, in Ireland and Europe each company suddenly faced risks of being identified as the object of taxation law that does not exist.
For a long time, Apple has consistently supported the reform of international tax simple and clear goals. We believe that these changes should be determined through appropriate legislation, proposals should be between leaders and citizens in the affected countries were discussed. Moreover, any new law should look forward, not grievances.
Our Ireland made promises, we plan to continue to invest there, we will be with our passion and dedication to achieve growth, customer service. We firmly believe that the facts and the European establishment of legal principles is eventually will prevail.
Apple facing Europe's biggest tax fine, up to a maximum of $ 19 billion
EU or Broadsword "cut" Apple, Apple is liable to the maximum annual income 1/10