Wednesday, August 31, 2016

The EU money Apple to pay 13 billion euros to Ireland – The Obs

Brussels (AFP) – The European Commission has ordered Apple to pay to Ireland more than 13 billion euros of “unjustified tax benefit”, a decision that the US group appears determined to fight and causing Washington’s wrath.

This “unilateral approach (…) threatens to undermine the progress we have made together with the Europeans for a fair international tax system,” responded Tuesday Josh Earnest, spokesman for Barack Obama. “When I’m just saying, I mean for taxpayers but also for companies trying to do business around the world.”

The US Treasury has also insurgent: the decision of the Commission could “threaten foreign investment, the business climate in Europe and the significant economic spirit of partnership between the US and the EU.”

Dublin, “strongly disagree with this decision,” and US IT company immediately announced they plan to appeal the decision, described by Apple as “harmful” for investment and job creation in Europe.

“message to the Apple community in Europe, “the CEO of computer giant, Tim Cook, said he was” confident “to see the decision” be canceled “.

the phenomenal amount claimed far exceeds the amounts that had to pay in the past other companies pinned by Brussels for unlawful state aid.

the last record 1.29 billion euros, was held by the Nürburgring racing circuit in Germany, according to a Commission spokesman said.

the amount, however, is relative given the approximately $ 570 billion of market capitalization of the group, first world capitalization, and turnover of 234 billion recorded on its last financial year ending September 2015. at the New York Stock Exchange, its stock also closed Tuesday down only 0.77% to $ 106

-. attractive Taxation –

after three years of investigation, the Commission found that the tax advantages granted by the Irish Government constituted “unlawful aid” that allowed Apple “to avoid tax on virtually all generated profits “by its sales in the European single market.

” Ireland must now recover unpaid taxes by Apple on its territory between 2003 and 2014, ie € 13 billion plus interest “said Tuesday the Commission.

the benefits granted were such that the company has even seen” apply an effective tax rate of 1% of companies on its European profits in 2003 , rates decreased to 0.005% in 2014, “said EU Competition Commissioner Margrethe Vestager during the press conference.

the European Commission said that Ireland n was not the only state affected by this refund. If a country is deemed injured seeing for years the sales of products made from its territory to Ireland to escape the tax, it could also claim his slice of cake, mechanically reducing the amount due in Dublin.

Known for its particularly attractive tax system, Ireland has attracted many companies in recent years, including US multinationals that have installed their European headquarters there.

Apple is well based since 1980 in Cork, in the south of the country, where it employs about 6,000 people

-. Wince –

when asked at a press conference on the tension of relations with the US Margrethe Vestager said “she shared the same goal as the USA in a fair and equitable global taxation for citizens”.

There are less than a week, the US Treasury had yet talk louder. In a “White Paper” of 26 pages, he denounced the investigations of the Commission on fiscal state aid and retroactivity, which also relates to Apple, Starbucks, Fiat-Chrysler and Amazon.

In February the US Treasury Secretary Jack Lew was indignant in a letter to Jean-Claude Juncker, President of the European Commission, the EU “imposes penalties retroactively on the basis of a new broad interpretation aid State (…) and appears to target US companies disproportionately. “

the Brussels decision has however been applauded by NGOs such as Oxfam, who praised” a strong signal against tax evasion sent to multinationals, “or the ATF Association (Americans for tax Fairness), that” rather than reject “the approach of the Europeans,” the Treasury should vigorously pursue its own claims against Apple on its massive transfers of profits abroad. “

This is the fourth time in less than a year that the Commissioner Vestager punish multinationals that have passed favorable tax agreements with some European countries.

in October 2015, she was required to Starbucks and Fiat repayment of the aid received “illegally” respectively by the Netherlands and Luxembourg. Both countries have appealed.

In January, she was attacked at least 35 multinationals, including the Belgian-Brazilian brewer AB InBev, which received benefits in Belgium, a country particularly the tax system favorable for large groups.

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