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Apple appeals EU’s Irish tax penalty

A new ruling from the EU that obliges Apple to pay a possible tax of €13bn(£11 billion) has not gone down well with Apple, with the tech company choosing to appeal.

The EU came to the conclusion in August that the company’s tax procedure in Ireland was not legal and has imposed a penalty.

Apple’s European HQ is based in the Republic of Ireland, where corporation tax rate stands at 12.5%. The European Commission, however, stood firm when saying that the company was paying a maximum of 1%.

The firm made $53bn (£42.9bn) in net profit in the last financial year. Apple insists that it paid 26% in tax based on global earnings. The majority of that figure, however, is based in the United States.

Apple believes that it has been singled out and is a convenient target, while Ireland claims that regulators for the EU are meddling with its sovereignty.

Bruce Sewell, a general counsel for Apple, told Reuters that tax experts offered by authorities in Ireland were ignored by the commission.

Sewell said:

“Apple is not an outlier in any sense that matters to the law. Apple is a convenient target because it generates lots of headlines.”

A company the size of Apple can be reasonably expected to know the rules surrounding tax. However, such laws could cause a smaller firm to suffer. The UK tax system is a minefield and businesses need to stay on top of any changes made. Hiring an accountant in the Wirral will go some way to addressing this issue.

Posted by Peter
January 5, 2017
Tax

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