EU: Apple hit with $14.6 billion tax bill

Ireland must recover up to $14.6 billion in unpaid taxes from Apple, European officials said on Tuesday.

The tax ruling is the biggest the European Union has ever made regarding a single company, and it could spark a huge transatlantic row over how Europe treats US companies.

Apple shares initially fell almost 3%, but then recovered most of their losses. The company will appeal the decision. It said the ruling upended the international tax system and would damage jobs and investment in Europe.

The European Commission, which administers EU law, said the Irish government had granted illegal state aid to Apple by helping the tech giant to artificially lower its tax bill for more than 20 years.

“[EU] member states cannot give tax benefits to selected companies — this is illegal under EU state aid rules,” said Commissioner Margrethe Vestager, Europe’s top antitrust official.

The United States fired back immediately, saying retroactive tax assessments by the EU were unfair.

“The Commission’s actions could threaten to undermine foreign investment, the business climate in Europe, and the important spirit of economic partnership between the US and the EU,” a Treasury spokesperson said.

Full Content: CNN

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