The consequences of the case on Taxes for Apple depend on Ireland – RIA Novosti

19:21 30.08.2016

(updated: 19:26 30.08.2016 )

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BRUSSELS, August 30 – RIA Novosti, Maria Knyazeva The decision about how much and in what order the Apple Corporation shall reimburse the case of unpaid taxes, must take power in Ireland, say the European Commission -. though that Ireland may in principle appeal the decision of the European Commission.

“today the European Commission decided that the tax benefit received by Apple in Ireland do not comply with EU legislation. Two tax solutions artificially Ireland eased the tax burden of the company for about two decades, that was at odds with the state to provide support to the EU regulations. Now the company must return the received benefits worth up to 13 billion euros plus interest, “- said the European Commissioner for competition Margrethe Vestager at a press conference on Tuesday

.” To determine the exact amount and method of payment should the authorities of Ireland. This amount, for example, can be directed to a special account in the event of an appeal to the Court of the EU “, – she said.

As reported earlier Tuesday, the government of Ireland, and Apple’s appeal against the decision of the European Commission. The Minister of Finance of Ireland Michael Noonan strongly disagrees with the EC Regulation, and intends to seek the approval of the government to appeal to the European courts. According to Reuters, Apple also confirmed that it would appeal the decision of the European Commission.

The White house on Tuesday warned the EU against “unilateral “action against the American corporation Apple. A spokesman for the White house Josh Ernest, said possible multibillion-dollar fines against Apple’s” counterproductive “and harm EU-US economic cooperation.

The arguments of the EC

The EU can not give tax breaks to individual companies, whether it is European or international companies, large or small, he pointed Vestager, adding that this is not an innovation of the EC: the rules on the provision of state support the Union’s action since 1958 and apply to all companies that want to operate in the single market EU. “They are designed to ensure equal competition companies, including in the matter of taxes,” – said the European Commissioner

The present decision concerns two units of the group Apple: Apple Sales International and Apple Operations Europe.. According to a press release from the European Commission, they have the right “to use the intellectual property” Apple for the sale and production of the company’s products outside North and South America.

According Vestager, the profits from these sales were taken into account in Ireland. “So we decided to Apple and in its investigation did not consider (this scheme – Ed.)” – Said Vestager.

The EC considered another scheme. Ireland has allowed the sharing of revenues between these offices and the so-called head office of the company. “This office did not have the staff, there was no room, there was no real activity Head office is not taxable in Ireland and elsewhere This was possible by Irish law..”, – Said Vestager, adding that most of the profits went to the the head office and is not taxable.

in the release, the EC notes that this arrangement has allowed the company to pay significantly less tax than other businesses for many years. In fact, it has allowed Apple to pay an effective rate of corporation tax of 1% of their profits in Europe in 2003 and to 0.005% in 2014.

“The European Commission has decided that the division of profits was not as actual or economically justified “, – said Vestager

” This tax Apple regime in Ireland is illegal from the point of view of the EU rules This gave the corporation a considerable advantage compared with other companies tax solutions do not.. can maintain a method of calculating taxable profit, which does not reflect the economic reality of the activity or “-. said it

to restore” fair competition “Apple is expected to return up to 13 billion euro in unpaid taxes plus interest. This amount covers the period from 2003 to 2014, that is, it begins 10 years before the European Commission sent a first request on this case to the authorities of Ireland – in 2013, the commissioner reminded

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