Apple, like most companies, do not like taxes. In fact, it tries to avoid them in myriad of ways, but mostly within legal boundaries. However, not always can even the world's highest valued company get away with their tax schemes.
One of these happened for years between Apple and Ireland. The EU member state offered Apple special protections against taxes with agreements that angered the European Commission.
According to EU, Ireland's tax agreement with Apple is considered state aid which is illegal for a EU member state. Both Apple and Ireland have been against EU's decision, and Ireland has refused, or been very slow in the least, to charge Apple the taxes.
Lately EU has been pressuring Ireland to collect the $15 billion in taxes that Apple owes them, even to the extent that it has threatened to sue Ireland. Meanwhile, Apple has been moving their assets to other tax havens, at least to the island of Jersey, Paradise Papers revealed earlier this year – totally unrelated, right?
Well, now Ireland and Apple have agreed on terms to make sure taxes are paid appropriately. Ireland will start collecting the 13 billion euros in taxes from New Year onwards. However, European Commission is still holding on to the hammer of justice as long as there are still unpaid taxes, and will take Ireland to court if it stops collecting the 13 billion euros.
According to EU, Ireland's tax agreement with Apple is considered state aid which is illegal for a EU member state. Both Apple and Ireland have been against EU's decision, and Ireland has refused, or been very slow in the least, to charge Apple the taxes.
Lately EU has been pressuring Ireland to collect the $15 billion in taxes that Apple owes them, even to the extent that it has threatened to sue Ireland. Meanwhile, Apple has been moving their assets to other tax havens, at least to the island of Jersey, Paradise Papers revealed earlier this year – totally unrelated, right?
Well, now Ireland and Apple have agreed on terms to make sure taxes are paid appropriately. Ireland will start collecting the 13 billion euros in taxes from New Year onwards. However, European Commission is still holding on to the hammer of justice as long as there are still unpaid taxes, and will take Ireland to court if it stops collecting the 13 billion euros.
