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| Apple and Ireland to challenge EU tax ruling this week | Apple and Ireland to challenge EU tax ruling this week |
| (about 2 hours later) | |
| Apple plans to appeal this week against the European Commission's ruling that it pays up to €13bn (£11bn) to Ireland in back taxes. | |
| EU regulators ruled Apple's controversial tax deal was illegal, and is demanding the record penalty. | EU regulators ruled Apple's controversial tax deal was illegal, and is demanding the record penalty. |
| The tech giant says it has been singled out and was "a convenient target". | The tech giant says it has been singled out and was "a convenient target". |
| Ireland is also contesting the decision, claiming EU regulators were interfering with national sovereignty. | Ireland is also contesting the decision, claiming EU regulators were interfering with national sovereignty. |
| 'Misunderstood law' | 'Misunderstood law' |
| Apple's European headquarters are located in Ireland - where the standard rate of corporate tax is 12.5%. | Apple's European headquarters are located in Ireland - where the standard rate of corporate tax is 12.5%. |
| But in August, the commission said Ireland had enabled the company to pay substantially less than other businesses, in effect paying a rate of no more than 1%. | But in August, the commission said Ireland had enabled the company to pay substantially less than other businesses, in effect paying a rate of no more than 1%. |
| Ireland's finance ministry said in a strongly-worded statement on Monday that the European Commission had "misunderstood the relevant facts and Irish law". | Ireland's finance ministry said in a strongly-worded statement on Monday that the European Commission had "misunderstood the relevant facts and Irish law". |
| "Ireland did not give favourable tax treatment to Apple - the full amount of tax was paid in this case and no state aid was provided," it said. "Ireland does not do deals with taxpayers." | "Ireland did not give favourable tax treatment to Apple - the full amount of tax was paid in this case and no state aid was provided," it said. "Ireland does not do deals with taxpayers." |
| And Apple's general counsel Bruce Sewell told Reuters that the commission had disregarded tax experts brought in by Irish authorities. | And Apple's general counsel Bruce Sewell told Reuters that the commission had disregarded tax experts brought in by Irish authorities. |
| "Apple is not an outlier in any sense that matters to the law. Apple is a convenient target because it generates lots of headlines," Mr Sewell said. | "Apple is not an outlier in any sense that matters to the law. Apple is a convenient target because it generates lots of headlines," Mr Sewell said. |
| Even if Apple lost its appeal. the record tax bill should not be a problem for iPhone maker which saw a net profit of $53bn in the 2015 financial year. | Even if Apple lost its appeal. the record tax bill should not be a problem for iPhone maker which saw a net profit of $53bn in the 2015 financial year. |
| Apple is not the only company that has been targeted for securing favourable tax deals in the European Union. | Apple is not the only company that has been targeted for securing favourable tax deals in the European Union. |
| Last year, the commission told the Netherlands to recover as much as €30m (£25.6m) from Starbucks, while Luxembourg was ordered to claw back a similar amount from Fiat. | Last year, the commission told the Netherlands to recover as much as €30m (£25.6m) from Starbucks, while Luxembourg was ordered to claw back a similar amount from Fiat. |