The European Regulators ruled previously that Ireland had to collect €13 billion in tax from Apple. The ruling came after the regulators said that the tax deal between Ireland and Apple was illegal.
Both Apple and the Irish Government are appealing the ruling by the European Commission. Now it would appear that the EU may actually fine Ireland for not collecting the tax.
According to a recent report by Bloomberg, Ireland could be fined by the EU for not collecting the €13 billion from Apple. The European Regulators may issue a non-compliance action to the Irish Government.
Whilst both Apple and the Irish Government are appealing the ruling, the money will have to be held in Escrow. It is not clear as yet on how much the fine is that the EU regulators intend to place on Ireland.
The Background of the Tax Dispute
The dispute between Apple, Ireland, and the European Commission dates back several years. The European Commission argued that Ireland provided Apple with unfair tax advantages, allowing the tech giant to pay significantly less tax than other businesses. This arrangement, according to the Commission, constituted illegal state aid under EU rules. The €13 billion figure represents the amount of tax that Apple allegedly underpaid over a decade.
Ireland, on the other hand, has maintained that it did not give Apple any special treatment and that the tax arrangements were in line with Irish and European law. Apple has also argued that it has paid all the taxes it owes and that the European Commission’s decision defies reality and common sense.
Potential Implications of the Fine
If the European Union decides to fine Ireland for not collecting the tax, it could set a significant precedent. It would signal the EU’s determination to enforce its state aid rules and ensure that all member states comply with its decisions. This could have broader implications for other multinational companies and their tax arrangements within the EU.
The fine could also have political and economic repercussions for Ireland. On one hand, it might strain Ireland’s relationship with the EU. On the other hand, it could impact Ireland’s reputation as a favorable destination for multinational companies looking to establish their European headquarters. Ireland has been known for its business-friendly tax policies, which have attracted numerous global corporations.
Moreover, the fine could have financial implications for the Irish government. While the €13 billion from Apple would be held in escrow until the appeals process is concluded, any additional fines imposed by the EU would need to be paid by the Irish government. This could potentially affect public finances and lead to budgetary adjustments.
The ongoing tax dispute between Apple, Ireland, and the European Commission is a complex and multifaceted issue. The potential fine from the EU adds another layer of complexity to the situation. As the appeals process continues, it remains to be seen how this case will ultimately be resolved and what the broader implications will be for Ireland, Apple, and the EU’s approach to state aid and tax arrangements.
Source Apple Insider
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