European commission ordered the Apple to pay up to $14.5 billion plus interest in back taxes for its subsidiaries in Ireland.it is the largest fine the EU has ever doled out to a company. The decision has been taken after two year probe.
The commission argues that apple received “undue tax benefits” between 2003 and 2014. On the other hand, Tim cook, CEO of Apple, called it a “total political crap.” He claims that company has paid all the taxes it owed is disingenuous.
According to apple- it’s paid $4.89 billion in income taxes outside the U.S. during the said period. Whereas European commission’s stamen claims that company paid an effective tax rate ranging from 1% in 2003 to 0.005% in 2014 on its European profits during the time.
Both Apple and Ireland plan to appeal the ruling. . It will be interesting to see how this plays out in the end, as it may be the first case of a company being ordered to pay back taxes to a government that doesn’t even want the money.