EU takes Ireland to court for not claiming Apple tax windfall
BRUSSELS
(Reuters) - The European Commission said on Wednesday it was taking
Ireland to the European Court of Justice for its failure to recover up
to 13 billion euros ($15.3 billion) of tax due from Apple Inc (AAPL.O), a move labeled as “regrettable” by Dublin.
The
Commission ordered the U.S. tech giant in August 2016 to pay the unpaid
taxes as it ruled the firm had received illegal state aid, one of a
number of deals the EU has targeted between multinationals and usually
smaller EU states.
“More than one year after
the Commission adopted this decision, Ireland has still not recovered
the money,” EU Competition Commissioner Margrethe Vestager said, adding
that Dublin had not even sought a portion of the sum.
“We
of course understand that recovery in certain cases may be more complex
than in others, and we are always ready to assist. But member states
need to make sufficient progress to restore competition,” she added.
The
Commission said the deadline for Ireland to implement its decision had
been Jan. 3 this year and that, until the aid was recovered, the company
continued to benefit from an illegal advantage. Apple is appealing the
case.
Vestager, who was also announcing a demand for Amazon (AMZN.O)
to pay about 250 million euros in taxes to Luxembourg, declined to
comment on possible penalties on Ireland if it were not to comply with
an eventual ECJ ruling against it.
Ireland’s
finance ministry said it had never accepted the Commission’s analysis in
the Apple state aid decision, but was committed to collecting the money
due pending Dublin’s own appeal of the ruling.
Ireland,
it said, had been in constant contact with the Commission and Apple for
more than a year and was close to setting up an escrow account. This
would include the hiring of at least one investment manager to handle
the fund.
“It is extremely regrettable that the
Commission has taken this action, especially in relation to a case with
such a large scale recovery amount,” the ministry said in a statement.
Vestager told a news conference that in other cases of illegal tax advantages, such as Fiat (FCHA.MI) in Luxembourg, Starbucks (SBUX.O)
in the Netherlands and a Belgian scheme for 35 companies, the money was
recovered even before appeals were exhausted. However, the amounts
involved were far smaller.
The Commission said
that Ireland had made progress on calculating the exact amount due, but
was only planning to conclude the work by March 2018 at the earliest.
Ireland,
like the Benelux countries, faces criticism from bigger EU states that
they are siphoning off tax revenues and the bloc’s governments are
negotiating reforms
($1 = 0.8507 euros)
Reporting by Philip Blenkinsop in Brussels, Conor Humphries in Dublin; Editing by Alastair Macdonald
Our Standards:The Thomson Reuters Trust Principles.
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