Irish Cabinet Will Join Apple Against European Commission Tax Ruling

The cabinet of the Republic of Ireland has decided on Friday, Sept 2, to appeal against the EU tax ruling stating that Ireland granted undue tax benefits to Apple.

Ireland and Apple Against EU Tax Ruling

According to Reuters, the European Commission has ruled this week that Ireland granted up to 13 billion euros ($14.5 billion) undue tax benefits to the U.S. high-tech giant Apple. The Commission has also ruled that the U.S. company must pay up the tax to Dublin.

The decision has angered Washington.  The U.S. government accuses the European Union (EU) of claiming tax revenue that should rightly go to the U.S.

The transatlantic tensions between America and EU are rising. In this context, the White House said President Barack Obama will raise the issue of tax avoidance by multinational corporations this weekend in China, at a summit of the G20 leading economies.

In a move that might seem as a paradox, Ireland is determined not to accept the tax windfall. The amount in unpaid taxes by Apple would be equivalent to the country's spending on funding its health service last year.

According to BBC News, the Irish cabinet agreed on Friday, Sept 2, on the decision to appeal the EU tax ruling. Taoiseach Enda Kenny declared that he doesn't have to make any apology for defending the Irish government's right to appeal. Speaking after the cabinet meeting, he said that the issue is in fact about Ireland and its people as a sovereign nation.

A Irish government spokesman also said on Friday that a motion will be sent to the parliament on Wednesday. The motion is seeking a parliamentary endorsement of the government's decision to join Apple in its fight against the EU tax ruling.

Meanwhile, Apple chief executive Tim Cook called the EU decision "political" and "maddening" and he said that he feels confident that the ruling would be overturned on appeal.

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