Ireland plans to invest the 14 billion euros (about US$15.5 billion) that Apple has been ordered to pay in back taxes into housing, energy, water and transport infrastructure, Finance Minister Jack Chambers told parliament on Tuesday — as reported by Reuters.
“It is this government’s view that we should utilize these revenues to address the known challenges that we face in housing, energy, water and transport infrastructure,” Chambers said.
The European Commission, Europe’s anti-trust and consumer investigation agency, ruled in 2016 that Ireland, Luxembourg and the Netherlands have attracted investment and jobs by helping big companies avoid tax in other countries, including European Union members.
The commission said Ireland was too lenient in rulings it gave to Apple and which helped the company shield tens of billions of dollars in profit from taxation. At 12.5%, Ireland’s corporate tax rate beats the U.S. rate of 35%. However, participating companies don’t pay that 12.5% under the double Irish structure.
As a result, the European Commission ruled that Apple must pay €13bn (about US$14 billion) in unpaid taxes to Ireland by the European Court of Justice (ECJ).
Article provided with permission from AppleWorld.Today
