Wednesday 18 October 2017

Ireland faces rebuke by EU for failing to collect €13bn Apple tax bill

Ireland faces a rebuke from EU authorities for failing to collect a year-old tax bill worth €13bn from tech giant Apple. Photo: PA
Ireland faces a rebuke from EU authorities for failing to collect a year-old tax bill worth €13bn from tech giant Apple. Photo: PA

Dara Doyle

Ireland faces a rebuke from EU authorities for failing to collect a year-old tax bill worth €13bn from tech giant Apple.

The European Commission may issue a so-called non-compliance action as soon as this week, sources close to the matter have claimed.

The EU has pushed Ireland to collect the massive bill which was initially due by January 3.

In an order that reverberated across the Atlantic, the commission last year slapped Apple with a multi-billion euro bill, saying Ireland granted unfair deals that reduced the company's effective corporate tax rate.

The decision was hotly contested by the State and Apple and both are appealing the decision.

Government officials have repeatedly insisted that no sweetheart tax deals have been offered to firms to attract them here.

Once the multi-billion sum is collected, authorities here will place the money in an escrow account pending an appeal.

If the appeal, which could take as long as five years, is successful, the cash will be returned to Apple.

The Government is seeking managers to invest the money while the appeal is going on.

The Department of Finance and an EU spokesman declined to comment on the latest development in the case.

If the commission considers an EU state has failed to implement a recovery order in a state aid case, regulators can sue at the bloc's courts in Luxembourg.

Judges would then rule on the alleged non-compliance and can issue a fine.

Irish Independent

Also in Business