Apple faces Europe's biggest tax ticket, up to $19 billion

According to news from foreign media, the European Union ruled that Apple received illegal assistance from the Irish government and that Apple will receive the largest tax penalties in Europe today, up to a maximum of US$19 billion.

The Financial Times stated that Margrethe Vestager, Commissioner for Competition Affairs of the European Commission, which is in charge of the anti-monopoly investigation, issued a final conclusion to the EU Executive Committee on Monday and determined that the Irish government's two prepayment opinions issued to Apple violated EU regulations. , gave Apple's other companies failed to enjoy the preferential treatment.

The committee began its investigation in 2014 and after a three-year investigation, it finally issued a 130-page verdict. The European Commission pointed out that Ireland’s relevant taxation arrangements are specifically designed for Apple and allow Apple to pay the least tax. The data shows that Apple can only pay less than 1% of the European sales rate, which is far below the Irish's official tax rate of 12.5% ​​on commercial profits. According to the minutes of the meeting, the tax arrangement was based on employment considerations. It is reported that Apple’s employees in Ireland account for one quarter of the total number of employees in Europe.

Analysts expect that the European Commission may require Apple to pay taxes between 1 billion and 19 billion U.S. dollars, depending on the final EU ruling and the Irish government's calculation.

Outsiders said that both denied any wrongdoing. The decision will inevitably trigger Apple and Ireland to appeal in the European Court of Justice. The Wall Street Journal believes that the European Union’s penalties for Apple’s payment of taxes may intensify the tension between the two sides of the Atlantic.

The recovery will likely be the biggest fine since Brussels was authorized to oversee the European business. The largest ticket that was previously received was EDF, which was asked to make up 1.4 billion euros.

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