Technology - - Dec 06,2017
This announcement is followed by the European Commission’s ruling in 2016 which stated that tax benefits acquired by Apple were illegal as per EU rules.
Ireland is set to comply with a European Commission order concerned with the collection of the €13bn tax bill from the US tech giant Apple.
Last year, the Commission ruled that Ireland was responsible to provide Apple illegal state aid. This included the permission to pay an operative 1% corporation tax. However, in response, the Irish government states it deeply disagrees with the Commission's word and their analysis of the whole scenario.
According to Ireland’s Finance Ministry, the disputed amount would be employed into an “escrow fund”. He added the proceeds will be released only after there is a “final determination in the European Courts”. To make the matter more interesting, Ireland has submitted an application in the General Court of the European Union requesting the Commission's decision to be canceled.
On the other hand, Apple is readily challenging the Commission's presiding. Tim Cook, Apple’s chief executive has termed this issue as "maddening".
The prime reason why Ireland doesn’t need the money is revolving around its reputation. The nation is reluctance in collecting the taxes associated with Apple because it might hamper its positioning as an investment destination. Currently, a large number of multi-national companies such as Apple, Pfizer, and Intel have already trusted this region to plan out significant business establishments.
Another reason due to which Ireland is maintaining a denial state is related to the funds acquired. It is believed that the nation may not necessarily grab the overall fund amount for its own storage.