Apple was fined 13 billion euros

“Member States of the EU are unable to provide tax relief to specific companies as this violates the rules of mutual assistance with member States of the European Union”, said in Brussels member of the Antitrust of the EU Commission, Margret Vestager. The two-year trial, Apple was found guilty of tax evasion and must pay an unprecedented fine in the amount of 13 billion euros.

The investigation of the European Commission has found that Ireland provided illegal tax benefits to Apple that allowed the local unit of the company for many years pay considerably less in taxes compared to other businesses. In particular, in 2003, Apple paid to the budget of just 1 per cent of its revenue in Europe, and in 2014 ā€” and at 0.005 percent.

In the end, resourcefulness and greed turned the company from Cupertino a serious penalty: according to the verdict of the European Commission, Apple will have to compensate the losses totaling 13 billion euros. This penalty has become the largest in the history of the Commission, and nearly ten times the amount of the fine of 1.4 billion euros, which was offered last year, the company is Electricite de France.

90% of the revenue received by Apple outside the United States, passed through two of its Irish unit Apple Sales International and Apple Operations Europe. The Commission found that these businesses were purely nominal organizations “do not meet economic reality: almost all of the profits, which reported the two companies were placed on the accounts of “head office”, existing as it turned out, only on paper.

“Income attributable to “head office”, is not taxed in any country in virtue of specific provisions in Irish tax legislation which is no longer valid, ā€” stated in the verdict. ā€” Thanks to this method of enumeration, which is described in the tax returns with Apple pay, only a valid corporate tax, which is for Apple Sales International has decreased from 1% in 2003 to 0.005% in 2014.”

Can you imagine how spoiled before the presentation 7 September mood Tim cook. However, on the other hand, if it is so risky to walk on the edge, you need to be prepared for different outcomes. And the case could end in criminal process with real prison terms for defendants.

Materials CultOfMac.com

Clifton Nichols

Clifton Nichols

Hi! Iā€™m Clifton and I am a full-stack engineer with a passion for building performant and scalable applications that are beautiful and easy to use.

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