From so many years Apple has given text exemption from Ireland which was shocking news at that time. Three years of investigation has shown that tax exemptions of US firm in Ireland are illicit. According to the European Commission statements, Apple had the agreement with Ireland that enabled the company to pay only 1% of a corporate tax rate that is much less than other businesses paid.
But both Apple and Ireland pushed back against taken measures and are going to make review against it. Margrethe Vestager, the European Commissioner for Competition, mentioned that it is illicit according to the EU state aid rules to set some tax exemptions for selected companies.
She also added that according to the Commission’s investigation, Apple paid less tax than other businesses for many years because of illicit tax exemptions are given by Ireland. Though the basic rate of the corporate tax in Ireland is 12.5%, Apple had paid only 1% tax in 2003 and 0.005% tax in 2014 on its profit in Europe.
“Ireland and Apple reached the tax agreement which has nothing to do with economic reality,” said Ms. Vestager.
According to the Apple Company, the decision taken by the EC may have a heavy toll on lots of job positions.
Apple said that the decision of The European Commission set aside tax laws of Ireland, changes the international tax system and tried to overwrite the history of Apple Company in Europe.