Apple to pay Ireland $14.5B in taxes

Staff -

After finding Ireland unfairly taxed Apple, the European Commission, the European Union's executive body, ordered the tech giant to pay more than $14.5 billion in taxes, according to NPR.

Following an investigation, the European Commission found Ireland allowed Apple to pay less in taxes than numerous other companies. Although the Commission found the illegal tax breaks had been in effect since 1991, it can only "order recovery of illegal state aid for a ten-year period preceding the Commission's first request for information in 2013," meaning the Commission can only order Apple to repay the additional funds it received from tax breaks between 2003 and 2014.

But the tax breaks during that period add up: In 2003, Apple paid a 1 percent tax to Ireland, and in 2014, the tax rate decreased to 0.005 percent.

The tech giant must now pay Ireland 13 billion euros, approximately $14.5 billion, plus interest.

Apple claimed the demand "will have a profound and harmful effect on investment and job creation in Europe," according to NPR.

Both Apple and the Irish Minister for Finance, Michael Noonan, have revealed plans to appeal the European Commission's ruling.

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