5 ms·

Can someone clarify where this money will eventually end up (assuming it's paid)? The article says that it will be paid back to Ireland, yet it looks like Irel

Can someone clarify where this money will eventually end up (assuming it's paid)? The article says that it will be paid back to Ireland, yet it looks like Ireland was somewhat complicit in allowing this fraud to continue for so long? ' Is this just how it works, money goes to Ireland, and then recovered by Europe?

pluma 10y ago
AIUI the money is owed to Ireland but Ireland originally refused it, EC is now saying "no, really, you have to take it". Might be followed up by Ireland getting into trouble if they unfairly benefited from the deal? That said, I think Ireland owes the ECB money too, so they'll probably use that money to repay their debt? EDIT: Corrected EU->ECB as pointed out below.
- iameoin 10y ago
  If they have to take it (after the expected appeals by both Apple and Ireland) they will not be able to use it in the national budget. It will be used to draw down on the national debt, so ya could very well end up going back to the EC or more accurately the EC.
- giovannibajo1 10y ago
  If you're referring to the public debt, that's towards the ECB (private bank) not the EU (public institution).
bapbap 10y ago
The money paid will go to Ireland. Ireland allowed Apple to structure its tax affairs in a way that reduced their tax bill which is a great incentive to maintain a presence there. The EU has now determined this was an illegal tax benefit provided by Ireland, so Ireland must now collect the tax as if it had done so at the time. There is no penalty but interest must be paid. This is not your normal run of the mill tax avoidance case (or a fraud as you've mentioned) although it appears to look the same. This was Apple benefiting from decisions taken by Ireland that Ireland should not have made.
- efdee 10y ago
  What I don't fully understand is why Apple is fined instead of Ireland. Edit: Maybe "fined" is not the correct term for this, but my understanding is that Ireland had granted Apple tax benefits which they shouldn't have granted. Isn't Ireland in the wrong here, rather than Apple?
  - Oletros 10y ago
    Apple is not fined
    - madeofpalk 10y ago
      Instead they have to pay back the billions that they supposedly should have paid.
  - bapbap 10y ago
    No fine for Apple. Apple can almost look entirely innocent on this, they asked Ireland to look at how they've structured their tax affairs knowing full well what impact this would have on their tax bill. However Ireland agreed to it, even though it shouldn't have. The EU has now stepped in and clarified that Ireland should not have allowed this in the first place.
    - denzil_correa 10y ago
      Shouldn't Ireland also take the blame here? If not, this sets a dangerous precedent for future governments who can sek companies to set shop but then back out once courts rule against. I mean, Ireland here comes out with no culpability.
      - sosull 10y ago
        To whom should a country and its taxpayers be culpable in this situation? What would be the appropriate form of punishment?

pluma 10y ago

AIUI the money is owed to Ireland but Ireland originally refused it, EC is now saying "no, really, you have to take it". Might be followed up by Ireland getting into trouble if they unfairly benefited from the deal? That said, I think Ireland owes the ECB money too, so they'll probably use that money to repay their debt? EDIT: Corrected EU->ECB as pointed out below.

iameoin 10y ago
If they have to take it (after the expected appeals by both Apple and Ireland) they will not be able to use it in the national budget. It will be used to draw down on the national debt, so ya could very well end up going back to the EC or more accurately the EC.
giovannibajo1 10y ago
If you're referring to the public debt, that's towards the ECB (private bank) not the EU (public institution).

bapbap 10y ago

The money paid will go to Ireland. Ireland allowed Apple to structure its tax affairs in a way that reduced their tax bill which is a great incentive to maintain a presence there. The EU has now determined this was an illegal tax benefit provided by Ireland, so Ireland must now collect the tax as if it had done so at the time. There is no penalty but interest must be paid. This is not your normal run of the mill tax avoidance case (or a fraud as you've mentioned) although it appears to look the same. This was Apple benefiting from decisions taken by Ireland that Ireland should not have made.

efdee 10y ago
What I don't fully understand is why Apple is fined instead of Ireland. Edit: Maybe "fined" is not the correct term for this, but my understanding is that Ireland had granted Apple tax benefits which they shouldn't have granted. Isn't Ireland in the wrong here, rather than Apple?
- Oletros 10y ago
  Apple is not fined
  - madeofpalk 10y ago
    Instead they have to pay back the billions that they supposedly should have paid.
- bapbap 10y ago
  No fine for Apple. Apple can almost look entirely innocent on this, they asked Ireland to look at how they've structured their tax affairs knowing full well what impact this would have on their tax bill. However Ireland agreed to it, even though it shouldn't have. The EU has now stepped in and clarified that Ireland should not have allowed this in the first place.
  - denzil_correa 10y ago
    Shouldn't Ireland also take the blame here? If not, this sets a dangerous precedent for future governments who can sek companies to set shop but then back out once courts rule against. I mean, Ireland here comes out with no culpability.
    - sosull 10y ago
      To whom should a country and its taxpayers be culpable in this situation? What would be the appropriate form of punishment?