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Irish Government to File Appeal of EU’s $14.5B Apple Tax Ruling on Wednesday

Irish Government to File Appeal of EU’s $14.5B Apple Tax Ruling on Wednesday

Ireland’s Finance Minister Michael Noonan announced on Tuesday that the Irish government will formally submit its appeal of the European Commission’s Apple tax ruling on Wednesday.

Irish Government to File Appeal of EU's $14.5B Apple Tax Ruling on Wednesday


“The government fundamentally disagrees with the European Commission’s analysis and the decision left no choice but to take an appeal to the European Courts and this will be submitted tomorrow,” Reuters quoted Noonan as telling a European Parliament committee in Brussels.

Following a lengthy investigation, the European Commission recently ordered Ireland to collect $14.5 billion in back taxes from Apple. Ireland has been accused of offering preferential tax deals to companies such as Apple, which would constitute illegal state aid under European law. The EC found that Apple took advantage of the Irish tax situation to funnel billions in foreign income through the country, avoiding tax bills in other countries.

Ireland is fighting the EU’s decision, even though the country would of course benefit from an influx of tax revenue. Irish officials fear the decision could scare away other companies who may be considering basing their international operations in the country, losing much-needed jobs for the Irish economy.

Apple is also appealing the ruling, saying it follows the laws as they are written, and pays what it owes according to those laws.

Ireland is not the only European country facing tax rulings such as the one concerning Apple, as Belgium, the Netherlands, and Luxembourg have also had similar finding brought against them for their tax deals with companies like Starbucks and Fiat Chrysler. Those countries are also appealing the rulings, which can be a long, drawn out process, taking several years before a resolution is reached.

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