Apple Ordered to Pay Up to $14.5 Billion in EU Tax Crackdown

Bloomberg:

Apple Inc. was ordered to repay a record 13 billion euros ($14.5 billion) plus interest after the European Commission said Ireland illegally slashed the iPhone maker’s tax bill.

The world’s richest company benefited from a “selective tax treatment” in Ireland that gave it a “significant advantage over other businesses,” the European Union regulator said Tuesday. It’s the largest tax penalty in a three-year crackdown on sweetheart fiscal deals granted by EU nations.

And:

Apple and the Irish government have both vowed to fight the decision, which also risks stoking a fight with the U.S. over taxation policies — with the U.S. having already complained that Europe is unfairly targeting American companies and threatening global tax reforms.

And:

“I disagree profoundly with the commission’s decision,” said Irish Finance Minister Michael Noonan. Ireland’s tax system is founded on the strict application of the law “without exception,” he said.

The commission left him with “no choice” but to move toward an appeal before the EU courts. “This is necessary to defend the integrity of our tax system; to provide tax certainty to business; and to challenge the encroachment of EU state-aid rules into the sovereign member state competence of taxation,” he said.

This will certainly add pressure to the unity of the EU, still working through Brexit terms. If the European Commission ultimately prevails, I can’t help but think it would impact Apple’s operations in Ireland.