Apple’s Irish tax arrangements explained as company denies special treatment

appleireland

Two days after the Financial Times reported that the European Commission was about to come down hard on Apple’s alleged deal with the Irish government to reduce its tax liabilities, Apple has made a statement to Business Insider claiming that it has received “no selective treatment.”

Apple is proud of its long history in Ireland and the 4,000 people we employ in Cork. They serve our customers through manufacturing, tech support and other important functions. Our success in Europe and around the world is the result of hard work and innovation by our employees, not any special arrangements with the government. Apple has received no selective treatment from Irish officials over the years. We’re subject to the same tax laws as the countless other companies who do business in Ireland.

Since the iPhone launched in 2007, our tax payments in Ireland and around the world have increased tenfold. To continue that growth and the benefits it brings to the communities where we work and live, we believe comprehensive corporate tax reform is badly needed …

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Apple paid no UK corporation tax last year on profits of £68m ($103m)

Apple's Covent Garden store in London

Apple’s Covent Garden store in London

Apple’s three main British subsidiaries – Apple (UK), Apple Europe and Apple Retail UK – paid no corporation tax in 2012 despite reporting profits of £68m ($103m), reports the Financial Times.

Apple did not pay UK corporation tax last year, according to its latest filings, which are likely to underline the controversy over the US tech giant’s tax planning [...] Tax deductions from share awards to employees helped wipe out the corporate tax liabilities of the UK subsidiaries in the year to September 2012. In the previous year, the tax reported by the UK subsidiaries was £11.4m …  Read more