Bad news for one of the biggest technology companies, Apple is ordered to pay US$ 15 billion as the tax by European Commission.
Accusing the Irish government, the European commission said, the government curved the law and facilitated Apple to pay tax at a lower amount when Apple was operating its business in Europe.
Apple asserted that it operated its business in Ireland was according to the Irish law and policy, nonetheless, the European Union is not even considering Apple’s claim.
European Union’s measure was a part of an investigation to sort out which of the big multinational companies were escaping tax.
Relaxing the tax law Irish government encouraged Apple to invest in Ireland so that Ireland may increase and affluent its foreign investment sector and employment rate.
No discords appeared on this for the last two decades. But, suddenly the European Union brought this topic on the table and staunching Apple’s business.
After a 3-year investigation, European Commission’s complaint is Apple is paying less than 1% as tax from its total sales in the European region. Congruent with the EU’s policy, the tech giant is actually paying 12 times lesser tax than it was supposed to pay.
Margrethe Vestager, the European Union Commissioner explains Irish government’s extra advantage for Apple is against the EU law. And she declared now Apple should pay 13 billion Euros with the interest.
However, such decision by the commission gives a clear message that no country in EU has any authority facilitate any special facility. As a matter of fact, this decision made both Ireland and Apple discontent.
On the other side, Apple said EU is trying to rewrite the history of Apple. Additionally, the commission is interfering Ireland’s authority and such step will be ominous for Ireland’s employment.
Ireland also disagreed with the European Union saying it is rejecting the complaint and will take judicial shelter.