The European Commission (EC), as expected, has ordered the Irish government to recover up to €13 billion (£11bn) plus interest in “illegal tax benefits”. An investigation found Apple had been able to avoid taxation on almost all profits generated in the EU single market thanks to a structure which routed revenues through two “paper” headquarters in Ireland and minimal tax rates in the country. The EC says Apple only paid an effective corporate tax rate that fell from one percent in 2003 to 0.005 percent in 2014 – a rate which other companies in Ireland were not subjected to. This effectively amounted to state aid, the commission said. Apple tax amazon“Member States cannot give tax benefits to selected companies – this is illegal under EU state aid rules,” said Commissioner Margrethe Vestager, who is in charge of competition policy. “The Commission’s investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than ...
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