By now most of us have heard that the European Commission has ordered Apple to pay 13 billion Euros. But the money does not go to the EU, but rather the order is that Ireland has to collect the amount from Apple… But Ireland does not want to. Ireland has argued that Apple have paid the right amount of tax, at the right time, exactly as the Irish law states. The Irish Tax Commissioner has confirmed Apple has been totally transparent and met all its obligations
So what is going on here???
The European Commission does not like the Irish tax system as it encourages businesses to invest through Ireland (rather than the other European countries that have higher tax rates). Therefore it has stated that Ireland granted undue tax benefits to Apple which it claims is illegal under EU state aid rules. SO it is not Apple that has done anything wrong according to the EU (as shown by the fact that it clearly states there is no penalty on Apple), but rather the EU thinks Ireland has been naughty by having low tax rates.
So it appears that even though Apple complied with all of Ireland’s tax laws, and Ireland does not want the additional tax from Apple, the EU are requiring Ireland to get the additional tax from Apple.
That’s easy to understand?!?!?!