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EU Competition Commissioner Margrethe Vestager speaking today. Virginia Mayo/PA

Other EU countries could claim a portion of Ireland's €13 billion in back taxes from Apple

Vestager said other EU countries can try to prove some of Apple’s profits funnelled through Ireland were based on sales in their territories.

THE EUROPEAN COMMISSION has ruled that Apple must repay €13 billion in unpaid taxes to the Irish Government – but other countries could claim a slice of the pie.

Finance Minister Michael Noonan has said he “disagreed profoundly” with the ruling on illegal state aid, and has vowed to seek Cabinet approval to appeal the decision to the European Court of Justice.

Apple themselves have also indicated, in which it was found to have paid a tax rate of just 0.005% on its European profits by 2014.

European Commissioner for Competition Margrethe Vestager today said the “so-called head office only existed on paper – it has no employees, no premises and no real activities”.

In 2011, Apple Sales International recorded €16 billion in profit – but less than €50 million from this was taxed.

Vestager said other EU countries will now have the option to try and take a piece of the tax pie if they can prove some of Apple’s profits funnelled through Ireland were based on sales in their territories.

“In fact, the tax treatment in Ireland enabled Apple to avoid taxation on almost all profits generated by sales of Apple products in the entire EU Single Market,” she said.

“This is due to Apple’s decision to record all sales in Ireland rather than in the countries where the products were sold. This structure is however outside the remit of EU state aid control.

If other countries were to require Apple to pay more tax on profits of the two companies over the same period under their national taxation rules, this would reduce the amount to be recovered by Ireland.

She added: “The amount of unpaid taxes to be recovered by the Irish authorities would be reduced if other countries were to require Apple to pay more taxes on the profits recorded by Apple Sales International and Apple Operations Europe for this period.”

The amount of unpaid taxes to be recovered by the Irish authorities would also be reduced if the US authorities were to require Apple to pay more to their US parent company, to finance research and development efforts.

If the Irish Cabinet decides to appeal the Commission’s decision, it must still recover the illegal state aid but could, for example, place the recovered amount in an escrow account pending the outcome of the EU court procedures.

Read: I wouldn’t bet on Brexit actually happening, says Germany’s EU Commissioner

Read: Ireland’s sweetheart tax deal for Apple was worth up to €13 billion over a decade

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71 Comments
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    Mute Munster1
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    Feb 2nd 2022, 10:12 PM

    Destroyed for farms so they can sell Europe and the world cheap meat.

    278
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    Mute DERRY1973
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    Feb 2nd 2022, 10:18 PM

    @Munster1: soya bean more like.

    88
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    Mute john smith iv
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    Feb 2nd 2022, 10:35 PM

    @Munster1: if that is happening (I’m sure that the EU is mostly sufficient in beef) then get on to your MEP to ban it.

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    Mute Monty Donotno
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    Feb 2nd 2022, 11:42 PM

    @Munster1: more like destroyed for soya bean so they can sell Europe and the world cheap feed for producing meat and milk in their own countries while their governments pretend to care.

    40
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    Mute Bitcoin Buddy
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    Feb 2nd 2022, 10:23 PM

    IMF / ECB / WEF Wanting Ireland to slow down meat production while backhanding SA deforestation for cheaper meat.

    155
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    Mute Reg
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    Feb 2nd 2022, 10:32 PM

    Depressing.

    130
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    Mute Andy mc Laughlin
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    Feb 2nd 2022, 10:51 PM

    I am by no means a tree hugger but you would have to be deluded to think that this isn’t a bad thing.

    129
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    Mute Chief
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    Feb 2nd 2022, 10:23 PM

    Oh, Manhattan eh. Just down the road from almost none of us.

    105
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    Mute David Duffy
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    Feb 3rd 2022, 12:57 AM

    @Chief: do you not normally measure your rainforests in Manhattan’s?

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    Mute Fachtna Roe
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    Feb 3rd 2022, 9:15 AM

    @Chief: 6 * Manhattan =~ (3 * Dublin) + (1 * Athlone)

    14
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    Mute David Geraghty
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    Feb 2nd 2022, 10:24 PM

    Is there nowhere with an area six times the size of Manhattan that could have been referred to in the title. Or I don’t know, just say the specific figure

    92
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    Mute Ixtrix Net
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    Feb 2nd 2022, 11:20 PM

    @David Geraghty:
    A little larger than Grenada, or a little smaller than Mayotte. It says nearly 360km² in the article

    18
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    Mute SPQH
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    Feb 2nd 2022, 11:42 PM

    @David Geraghty: Manhattan is now a measurement of area since our stupid obsession with all things NY and the sheer amount of times Hollywood shove it down our throats as the default way a city should look, anything that’s ever happened that’s of any interest has happened in NY and your life is just bleak if you’re beyond bridge and tunnel, unless you’re from LA of course. Isle of Man is about 6 Manhattans.

    52
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    Mute John Johnes
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    Feb 2nd 2022, 10:23 PM

    A great reason for our gov to tax Irish citizen.

    84
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    Mute Alan Biddulph
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    Feb 3rd 2022, 8:17 AM

    @John Johnes: John I doubt you pay much tax if your intellect and comments on here are anything to go pay.

    24
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    Mute Alan Biddulph
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    Feb 3rd 2022, 8:21 AM

    @Alan Biddulph: By*

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    Mute Tom Gahan
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    Feb 3rd 2022, 6:33 PM

    @John Johnes: Yes indeed and put a bag of coal or a fill of heating oil to unaffordable heights.

    1
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    Mute andrew
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    Feb 2nd 2022, 10:50 PM

    Absolutely dreadful and Bolsonaro is a right piece of work neglecting the Amazon rainforest and the indegenous people

    103
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    Mute Hear me now
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    Feb 2nd 2022, 11:09 PM

    Handed paradise & what do we do…

    63
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    Mute Fachtna Roe
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    Feb 3rd 2022, 9:24 AM

    @Hear me now: Lose it, and write poetry about it?

    4
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    Mute SandraMeyler
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    Feb 3rd 2022, 7:22 AM

    Send Eamon Ryan there for a few years
    He will sort it

    22
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    Mute Alan Biddulph
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    Feb 3rd 2022, 8:14 AM

    @SandraMeyler: Good one Sandra! At least your recycled joke is renewable.

    19
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    Mute Will
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    Feb 3rd 2022, 12:35 PM

    For some perspective, over 60% of Brazil is covered in forest. The figure for Ireland is 12% and that has decreased slightly in the last 20 years.
    When we plant forest we tend to plant non native spruce and the like. This acidifies the soil and leads to a dead forest with little or no biodiversity. We plant for purely commercial reasons. Easy to point the finger at Brazil and tut.
    When you look at Brazils fast increasing population it is no wonder it leads to deforestation on a grand scale. Populists like Bolsonaro aren’t going to stand in the way when there’s money to be made. This leads to jobs which leads to votes. It’s a no brainer for him. Would our lot be any different given the circumstances?

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    Mute Michael Dowling
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    Feb 3rd 2022, 12:47 PM

    This is where the greens should be lobbying not taxing the Irish.

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    Mute Liam Mc Meel
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    Feb 3rd 2022, 12:06 AM

    Make a nice theme park out if that stretch of land

    4
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