Apple Fined $14.5 Billion For Tax Evasion By The EU
The Republic of Ireland has been a favorite tax haven of many global Multi National Corporations who have big businesses in many countires the World. It has been the most favored tax haven in the European Union for all Multi National Corporations due to the loose tax laws and tax benefits that they offer big Multi National Corporations.
Apple Inc. was also offered these tax breaks which according to the European Union are illegal as per their laws. Their argument is that no single company can be favored by any single government.
The European Union alleges that Apple has been consistently using these loopholes to evade taxes and pay a much lower tax rate than what they truly owe as per the European Union laws. The tax liability as per the European Union is a whopping $14.5 billion. This is not a small amount even for a Multi National Corporation as big as Apple Inc. The European Union has served this notice after a three year investigation that it did.
This has in turn enraged Apple Inc and the Republic of Ireland.
Apple Inc. is upset as it believes it has paid the taxes it fairly owes as per the country it operates out of, that is the Republic of Ireland. The Republic of Ireland is upset as the European Union could have served this notice on its own, but has asked them to serve Apple Inc. the notice and ensure that Apple Inc. pays the tax penalty
Industry insiders believe that Apple & Ireland had this coming as Apple was paying a measly tax rate of 1% as compared to the 12.5% tax rate that is applicable to everyone else. This is the reason for the European Union’s consternation.