Apple Follows Ireland Lead To Appeal EU's Ruling That Demands $14 Billion In Tax

By Precious Gem de Peralta
Apple Logo -- 801 West North Avenue Chicago (IL) 2015
Based on a third-party data by Pathmatics, Apple has spent a $97.3 million on digital ads compared to Samsung's $80.4 million. The data covered December 2015 until November 30, 2016.  Ron Cogswell via Flickr

Ireland’s Minister for Finance Michael Noonan revealed back in November that the country plans to file an appeal to the European Court of Justice. Now, the Irish Department of Finance has announced that it will indeed appeal the European Union’s ruling that demands Apple pay $14 billion in taxes to Ireland. The senior executives for Apple disclosed that the tech company will also appeal this week.

According to Reuters, Apple said that EU regulators have ignored tax experts and corporate law. The tech giant alleged that EU “deliberately picked a method to maximize the penalty”. General Counsel Bruce Sewell and Chief Financial Officer Luca Maestri disclosed that the company will lodge an appeal against EU’s ruling at Europe’s second highest court. Sewell claimed that Apple was “singled out because of its success”.

The US government was apparently not also happy with EU’s tax demand. In an unexpected turn of events, Sewell said that Apple is hopeful that US President-elect Donald Trump “will enact reforms to tackle tax avoidance which has led trillions of dollars in profits being held abroad”. Apple and most tech companies were not supportive of Trump during his campaign. In fact, the Silicon Valley were openly for Trump’s opponent, Hillary Clinton.

Trump recently called for a tech summit weeks before his inauguration. Apple CEO Tim Cook was among the top tech executives who were present in the event. Now, it seems that Trump may even help Apple and other US corporations. According to Reuters, experts say that Trump's victory will bring them “closer to winning a big tax break on $2.4 trillion in foreign profits”.

As for Ireland, the Department of Finance maintained that it is legal for the country to impose far less tax on profits. According to the New York Times, Ireland will make its case by citing the unfairness of the EU competition authorities. They are accused of “exceeding their competence and authority and seeking to breach Ireland’s sovereignty in national tax affairs”.

It should be noted that Ireland has friendly tax policies. American tech companies like Apple, Google, and Facebook all have headquarters in the said country. It is not surprising that Ireland does not want to receive the $14.4 billion from Apple. Ireland might be more interested in keeping Apple.

According to The Verge, the company was discovered to have paid between 1 and 0.0005 percent in annual taxes on its European profits that covered 2003 to 2014. The European Commission’s stand is that Ireland, along with a number of other nations, actually offer tax provisions to certain companies. The Commission pointed out that this results in “an unfair and illegal system”.

  • ‘Wang Mingdao’s Diary’ reproduction highlights complexities of contemporary Chinese Christianity

    On December 9, the China Graduate School of Theology (中国神学研究院) hosted a public lecture titled “A Courageous Witness in the Times—Launch of Wang Mingdao (王明道)’s Diary.” The lecture, themed “Faith Patterns in Beijing’s Christian Churches Through the Lens of Wang Mingdao’s Diary,” featured Dr. Ni Buxiao (倪步晓), Associate Director and Assistant Professor at the Christian Faith and Chinese Culture Research Center of Alliance Bible Seminary (建道神学院), as the keynote speaker.

  • Floating library ‘Doulos Hope’ arrives in Taiwan; spreading love and hope from a former cruise ship

    Doulos Hope, the international floating book fair ship, has returned to Taiwan and is now docked at Kaohsiung Port, open to the public from December 18, 2024, to January 12, 2025. Originally built in 1991 and renovated in 2022, the ship features over 2,000 books on various topics, including faith, science, and art. It is operated by a diverse crew of 140 volunteers from 25 countries, offering services such as education, healthcare, and community outreach. The ship's mission is to spread hope and

  • Chinese Online School of Theology publishes annual ministry report: Expanding Chinese theological education through new strategies

    In the 2023-2024 academic year, New York-based Chinese Online School of Theology (COST) has seen significant development in expanding its ministry in theological education and mission outreach. They have promoted a series of new events and projects to explore different strategies that expand theological education for Chinese ministers. The following are some highlights from the 2023-2024 annual report:

  • Dr. Fenggang Yang: How foreign forces transformed traditional Chinese legal systems

    In a recent lecture to Chinese Christians, scholar Dr. Fenggang Yang (杨凤岗) gave an in-depth analysis of the historical evolution and contemporary significance of the modern legal system in Chinese society. He explored the tensions and integrations between traditional law and modern rule of law, highlighting the distinctive characteristics of China’s traditional legal system and emphasizing the role of foreign influences in introducing modern legal practices into Chinese society.

Top Stories