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EU Takes Ireland To Court For Not Claiming Apple Tax Windfall (reuters.com)
Philip Blenkinsop, reporting for Reuters: The European Commission said on Wednesday it was taking Ireland to the European Court of Justice for its failure to recover up to 13 billion euros ($15.3 billion) of tax due from Apple, a move labeled as "regrettable" by Dublin. The Commission ordered the U.S. tech giant in August 2016 to pay the unpaid taxes as it ruled the firm had received illegal state aid, one of a number of deals the EU has targeted between multinationals and usually smaller EU states. "More than one year after the Commission adopted this decision, Ireland has still not recovered the money," EU Competition Commissioner Margrethe Vestager said, adding that Dublin had not even sought a portion of the sum.
In Europe you generally don't see headlines about how some big corporation just reported its largest profit in its entire history and is also laying off thousands of workers.
Biggest corporate news out of Europe, about European company, that I can think about in past couple years is Volkswagen and their vast emissions scandal.
Which is all the more ironic coming from Europe, given the 'Democratic Socialists' over there are so climate-woke and eco-conscious compared to us not-any-brand of socialist coal-burner Americans who allegedly make crappy sooty cars...but invented Tesla and autonomous driving anyways just for kicks.
I think the stereotypes you subscribe to aren't working.
Corporation tax in Ireland is 12.5%. Apple gets a sweetheart deal from the Irish government and pays a lot less than 12.5%. Sweetheart deals like this are banned in the EU to prevent a race to the bottom by other small states. It's OK under EU rules for them to charge less than 12.5% but that has to be the rate for all corporation tax payers in Ireland, not just Apple and other big multinationals with similar deals.
It's something Ireland agreed to on accession to the EU. If they want to leave the EU and play these sorts of games, no problem but Apple relies on Ireland's EU membership to be able to shuffle their profits from all the other EU nations frictionlessly through their Irish offices and pay less tax than anywhere else. Outside the EU Ireland is no further use as a cheap-tax-rate haven for Apple et al.
It's not Apple at fault here, it's the notoriously corrupt Irish government that has traditionally played fast and loose with such financial rules in many other circumstances. The EU has had enough. If Ireland don't collect the taxes due from Apple I'd expect various EU grants and subsidies to be cut back pro rata on the basis that the Irish government had the chance to raise those revenues properly themselves by charging the correct rate of tax in the first place.