EU: Irish taxes were state aid for Apple, €13bn fine for Cupertino

The EU Commission has imposed  €13bn ( $14.5 billion) fine to Apple for back taxes owed to Ireland, enjoying therefore indirect state aid from Dublin. In spite of a tax imposed on the companies by 12.5%, according to Brussels reconstruction, Apple has managed to tick a levy of 1% on European profits in 2003 and then declined even to 0.005% at the end of the period under investigation, ie 2014. So far, the highest fine imposed by the EU was 1.4 billion to the French energy giant EDF.

The European Commission may ask to recover illegal state aid for a period of 10 years retroactively as of the first request for information sent to Apple, which took place in 2013. Now Ireland has to recover unpaid taxes from Cupertino for years ranging "from 2013 to 2014, up to more interest 13 bn the euro."

In fact, the tax treatment has allowed Apple for years to avoid paying taxes on profits generated from sales inside the EU single market, thanks to the decision taken by the company to record all sales in Ireland, instead of in EU countries where the products were actually sold.

This tax structure, however, the Commission explains, is "yet outside the competence of the EU control of state aid," why "if other european countries will require Apple to pay more taxes on profits" concerning the same time period in their tax rules "this would reduce the sum to be recovered for Ireland."

"I profoundly disagree with the Commission's decision. Our tax system is based on the strict application of the law, as determined by the Parliament, without any exception," said the Irish Finance Minister, Michael Noonan, submitting the appeal. The same company has raised the barricades. "We will appeal," reads the company's notes, ensuring that "it pays taxes in all countries in which it operates." For Apple, the decision is "disastrous and will have a profound and negative effect on investment and the creation of jobs in Europe."