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Apple’s tax win might bring long term pain

by on16 July 2020

EU is not going to take this lying down

Apple’s win against a EU fine might bring more long term doom for Ireland and Jobs’ Mob.

The Tame Apple Press has been over the moon after an EU Appeals court threw out an EU fine against Apple for not paying any tax in Ireland under a dodgy deal done to promote jobs in the region.

The EU might still appeal the ruling at the European Court of Justice, but that is not the worst thing that could happen as a result of this win.

The EU has been mulling a crackdown on regulations as big US tech have been exploiting loopholes in tax rules. Now the feeling is that the Digital Services Act to tighten regulations must be fast tracked. Otherwise US technology companies will continue to pay no tax and kill off European rivals

The decision is not universally popular in Ireland either as the country is desperate for cash to fight off the economic damage caused by the Corona Virus.

Sinn Fein finance spokesperson Pearse Doherty said: "Today was a bad day for the Irish taxpayer."

Another opposition TD (member of the Irish parliament) said it would constitute "economic treason" if the Irish government does not accept the money, against the backdrop of the fiscal slump caused by the coronavirus pandemic.

Apple had previously described the European decision as defying "reality and common sense" while the Irish government had said it was fundamentally flawed.

Ireland had always refused to pursue the funds, but in 2018, Apple put €14.3 billion into an escrow - or holding - account, comprised of the €13.1 billion  in alleged unpaid taxes plus interest of €1.2 billion .

Last modified on 16 July 2020
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