Apple’s announcement that it will pay $38bn (€31bn) in US tax on its overseas cash will not reduce the $16bn tax bill the company owes the Government here following an EU ruling, the European Commission has said, writes Julia Fioretti.
“Nothing has changed,” said a spokesman for the commission, with regards to its 2016 ruling Apple received illegal state aid in Ireland through sweetheart tax deals with the Government.
“The commission’s 2016 state aid decision found that, over many years, tax rulings issued by Ireland had allowed Apple to pay less tax on profits recorded in Ireland than other companies subject to [the] same national taxation laws.
This gave Apple an illegal advantage in breach of EU state aid rules, which must now be recovered by Ireland — nothing has changed in that regard,” said the commission spokesman.
It is unclear whether Apple will be able to offset the Irish tax bill against the 15.5% US tax on offshore tax piles.