Apple must repay $14.5 billion in back taxes to Ireland, E.U. rules
On Tuesday, the European Union's antitrust agency ruled that Ireland had given Apple an enormous illegal tax break and ordered the country to recoup up to 13 billion euros, or $14.5 billion, from the tech giant. Apple and Ireland are expected to appeal the decision, which followed a three-year investigation by the European Commission into preferential tax treatment for certain companies by E.U. member states. European Commissioner Margrethe Vestager, who oversees E.U. antitrust efforts, said Apple pays an effective corporate tax rate of 1 percent, and the record penalty is for 10 years of back taxes.
The U.S. Treasury Department warned the E.U. against trying to claw back the taxes of American companies, arguing that the European Commission is overstepping its authority over national tax policy and that taking money from American multinationals hurts U.S. efforts to collect taxes on the companies. Ireland said its appeal, probably to the E.U. Court of Justice, is "necessary to defend the integrity of our tax system" and "send a strong message that Ireland remains an attractive and stable location of choice for substantive investment." Vestager told The New York Times earlier this year that her bureau is guided by simple policy: "Profits should be taxed where profits are made." An appeal is expected to take several years.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Nuclear near-misses
The Explainer From technical glitches to fateful split-second decisions, the world has come to the brink of nuclear war more times than you might think
By Rebecca Messina, The Week UK Published
-
What is cloud seeding and did it cause Dubai's severe rainfall?
The Explainer The future is flooded
By Devika Rao, The Week US Published
-
American Airlines pilots are warning of a 'significant spike' in safety issues
In the Spotlight The pilot's union listed 'problematic trends' they say are affecting the airline's fleet
By Justin Klawans, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published