Dublin, Ireland has filed suit against the EU saying they have mistaken Irish tax law as it applies to the computer company, Four months after the European Union gave Apple a bill for nearly $14 million in unpaid taxes.
Ireland filed a brief Monday saying Apple has not received any special credit in during the last decade, when the EU has accused it of paying improper taxes in Ireland, saying the company has adhered to all laws and should not be subject to the fine.
At issue are two Irish court decisions in 1991 and 2007 interpreting Irish law that says nonresident companies should not pay income tax on profit not generated in Ireland -- one of several tax codes that makes the country attractive for multi-national corporations looking to lower their tax bill.
Apple, which has yet to file a response to the EU fine, but says it will, contends the European Commission, which is charged with levying some fines, is singling the company out unfairly because of its prominence.
The look at Apple's tax-paying habits from its two offices based in Ireland started with the EU alleging the company paid a 0.005% tax level in Ireland in 2014, much lower than otherwise might be expected.
American news agency UPI reported today that Apple has two units based in Ireland, Apple Sales International and Apple Operations Europe, which maintain offices and have employees there, but because they are nonresident companies, Ireland only requires the company to pay tax on revenue credited to those divisions.
In the case of many of Apple's products, whose patents have been developed outside Ireland, this means a lot of the income linked to the Ireland offices is not taxable there.
Source: Qatar News Agency