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Ireland defends tax dealings with Apple Ireland defends tax dealings with Apple
(about 1 hour later)
The Irish government has defended its tax arrangements with Apple and insisted that it did not a have a “sweetheart” deal with the technology company as Brussels prepares to accuse Ireland of providing illegal state aid to the iPhone maker. The Irish government has defended its tax arrangements with Apple and said it did not a have a “sweetheart” deal with the technology company as Brussels prepares to accuse Ireland of providing illegal state aid to the iPhone maker.
A report in the Financial Times stated that the European commission – which enforces EU law – will issue preliminary findings from an investigation into Apple’s tax affairs in Ireland and will accuse the US firm of obtaining billions of euros in illegal state aid from successive Irish governments. The findings are expected to be published on Tuesday A report in the Financial Times stated that the European commission, which enforces EU law, would issue preliminary findings from an investigation into Apple’s tax affairs in Ireland and would accuse the US firm of obtaining billions of euros in illegal state aid from successive Irish governments. The findings are expected to be published on Tuesday.
But the Fine Gael-Labour coalition said on Monday it is confident that no EU rules were breached in its dealings with Apple, which pays a tax rate of less than 2% in Ireland. But the Fine Gael-Labour coalition said on Monday it was confident that no EU rules were breached in its dealings with Apple, which pays a tax rate of less than 2% in Ireland.
“Ireland is confident that there is no breach of state aid rules in this case and has already issued a formal response to the commission earlier this month,” the department of finance in Dublin said in response to reports about the imminent EU ruling.“Ireland is confident that there is no breach of state aid rules in this case and has already issued a formal response to the commission earlier this month,” the department of finance in Dublin said in response to reports about the imminent EU ruling.
Apple is a major employer in Ireland with 4,000 people working at its plant in Cork. An additional 2,500 jobs are supported locally by Apple’s presence in the city, according to its figures. Its Irish workforce is the second biggest in the EU, behind its operation in the UK which employs 5,000 workers. Apple is a major employer in Ireland with 4,000 people working at its plant in Cork. An additional 2,500 jobs are supported locally by the company’s presence in the city, according to its figures. Its Irish workforce is the second biggest in the EU, behind its operation in the UK, which employs 5,000 workers.
The finance department said it will take on board the “concerns and some misunderstandings” contained in the commission’s so-called opening decision – a set of early findings that will spell out why Brussels launched an inquiry into Apple’s tax affairs in Ireland. The finance department said it would take on board the “concerns and some misunderstandings” contained in the commission’s opening decision – a set of early findings that will spell out why Brussels launched an inquiry into Apple’s tax affairs in Ireland.
“Ireland welcomed that opportunity to clarify important issues about the applicable tax law in this case and to explain that the company concerned did not receive selective treatment and was taxed fully in accordance with the law,” the department of finance added.“Ireland welcomed that opportunity to clarify important issues about the applicable tax law in this case and to explain that the company concerned did not receive selective treatment and was taxed fully in accordance with the law,” the department of finance added.
In response to the investigation, Luca Maestri, Apple’s finance chief told the Financial Times: “It’s very important that people understand that there was no special deal that we cut with Ireland. We simply followed the laws in the country over the 35 years that we have been in Ireland.” Luca Maestri, Apple’s finance chief, told the Financial Times: “It’s very important that people understand that there was no special deal that we cut with Ireland. We simply followed the laws in the country over the 35 years that we have been in Ireland.”
He denied Apple ever made any threat to move jobs away from Ireland to secure a tax incentive when agreeing tax rulings with the Irish authorities in 1991 and 2007.He denied Apple ever made any threat to move jobs away from Ireland to secure a tax incentive when agreeing tax rulings with the Irish authorities in 1991 and 2007.
“If the question is, was there ever a ‘quid pro quo’ that we were trying to strike with the Irish government – that was never the case,” he says. “We’ve always been very transparent with the Irish government that we wanted to be a good corporate citizen.” “If the question is, was there ever a ‘quid pro quo’ that we were trying to strike with the Irish government – that was never the case,” he said. “We’ve always been very transparent with the Irish government that we wanted to be a good corporate citizen.”
Maestri said the process of agreeing the ruling “was a very typical discussion that any company has with any sovereign authority. There was nothing we were trying to hide. Maestri said the process of agreeing the ruling “was a very typical discussion that any company has with any sovereign authority. There was nothing we were trying to hide. If countries change the tax laws, we will abide by the new laws and we will pay taxes according to those laws.”
“If countries change the tax laws, we will abide by the new laws and we will pay taxes according to those laws,” he said The Apple finance chief added that corporate taxes in Ireland have increased more than 10 times since the introduction of the iPhone in 2007, during which time its global sales have risen from $24bn (£14.8bn) that year to $171bn in 2013.
The Apple finance chief added that corporate taxes in Ireland have increased more than 10 times since the introduction of the iPhone in 2007, during which time its global sales have increased from $24bn (£14.8bn) that year to $171bn in 2013.