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Ireland will give up billions in back taxes and stick by Apple; will appeal EU judgement

After some seriously loud discussions in Dublin, the Irish have decided to appeal the European Commission’s judgement earlier this week that might have compelled Ireland to collect $14.5 billion in back taxes from the tech giant. 

The Irish are effectively giving up $14.5 billion to keep Apple’s investment in the country coming. The Irish government, over the decades, has assisted Apple in assembling a system of subsidiaries, both real and on paper, that allow the tech company to pay almost no tax on European profits. The European Commission said such assistance amounted to Ireland contributing a form of “state aid” to Apple that’s illegal under EU rules.

Meanwhile, the Telegraph reports that Britain, having Brexited, is signaling that it might offer Apple a sweet tax deal should it tire of its tax problems in Ireland. Apple now employs more than 6,000 people in Cork County. The factory there is the only Apple-owned facility in the world that makes Apple products (Mac computers).

Apple CEO Tim Cook called the EU’s judgement “total political crap” and said he believes an appeal will prove successful.

(Image: Ritzee Rebel, Flickr)MS