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EU's Juncker says Apple tax decision is clearly based on facts and existing rules

Commissioner Margrethe Vestager, in charge of competition policy, said: 'Member states cannot give tax benefits to selected companies, this is illegal under EU state aid rules.' Photograph: (Getty)

WION Hangzhou, Zhejiang, China Sep 04, 2016, 09.19 AM (IST)
The European Union's ruling that Apple Inc must pay a huge tax bill to Ireland was clearly based on facts and existing rules and was not a decision aimed against the United States, European Commission president Jean-Claude Juncker said today.

Last week, the European Union antitrust regulators said Ireland gave illegal tax benefits to Apple worth up to 13 billion Euros ($14.5 billion).

They then ordered Apple to pay the said amount in taxes to the Irish government.

The EU ruled that Ireland gave undue tax benefits to Apple which is illegal under EU state aid rules because it allowed Apple to pay substantially less tax than other businesses. 

Apple's chief executive Tim Cook last week described the ruling as "total political crap", but France and Germany have come out to back Brussels on the decision.

Juncker said that the EU Commission investigations on taxation have mainly targeted European companies.

(WION with inputs from agencies)
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