Apple Incorporated: European Commission Fines Apple for Tax Evasion
Edwards, J., Oduro, A., Naik, A., O’Rourke, J. S. (editor)
January 17, 2018
Europe, North America
Strategy & General Management, Marketing & Sales, Finance & Accounting
Brand Management, Financial, International, Reputation Management
In 1991, Apple mad a tax deal with the Irish government to pay very low tax rates, on the condition that the California-based company carry out its European operations in Ireland. This tax ruling is what the European Union has described as “state aid.” To remedy the situation the EU has ordered Apple to pay Ireland € 13 Billion, plus interest, (equivalent to $14.5 billion) for unpaid taxes between the years 2003-2014. This verdict has left Apple, the U.S., and Ireland displeased. Case # 17-01.