A protester demonstrates in support of EU ruling against Apple outside parliament building in Dublin on September 2, 2016 (Photo : Getty Images/Paul Faith)
Apple is probably going to be ordered to count billions of Euros by The European Union Competition Council (EUCC) for dodging taxes in the Republic of Ireland. The ruling on tax evasion is scheduled to be delivered on Sept. 4 following completion of detail probe into Apple's controversial Irish tax affairs.
If the council rules against the tech giant, the penalty will be for billions of Euros and the largest monetary penalty in the history of EU. However, whatever the ruling will be, both Apple and the Irish government are believed to appeal against the ruling.
Under EU regulations, tax authority of any member country is not allowed to grant tax holiday or benefits in favor particular business enterprises. EU considers such interventions as illegal aid under state patronization. The EU competition regulator has accused Irish government in 1991 and 2007 for aiding Apple in narrowing down its tax liability, according to BBC.
In 1991, Apple has signed a tax agreement with the Irish authority amid sharp fall in iPhone sales due to PC booming. The iPhone manufacturer has made another agreement in 2007 on paying four percent tax due against $200 billion profit earned over a period of 10 years.
Apple earns around 90 percent of annual profit from its Irish subsidiaries. In addition to that, the Cupertino, California-based electronics and software giant holds a cash reserve of $187 billion in Ireland. The liquidity reserve in an overseas country is the largest one piled by any US business enterprise, reports Independent. EUCC alleges that such undue and illegal tax privileges allowed Apple to eliminate rivals while distorting competitive environment in the market.
Meanwhile, the probe and attempt for penalizing a United States multinational company have been criticized by the US government. The US Treasury Department has referred the moves as deeply troubling while representing the commission as a supra-national tax authority. Apple, however, denies any special tax deal and claims for operating business in Ireland following general tax provisions unlike other multinationals.
Apple has been enjoying tax benefits from the concerned authority of Ireland and EUCC has termed such arrangements as illegal. The council is about to impose a hefty monetary penalty following completion of the probe on alleged tax dodging. However, the moves have been criticized by the US government while representing those as deeply troubling.
In the video, EU competition council claims owing $14.5 billion from Apple in back taxes.
