Tue, Sep 13, 2016 - Page 15 News List

EU hands Apple 13 billion euro tax bill
歐盟判蘋果補鉅額稅金 臉書谷歌剉著等

The Apple logo is pictured behind the clock at Grand Central Terminal in New York in an undated photo.

Photo: Reuters

On Aug. 30, the European Union (EU) announced that the Irish Government’s tax benefits are illegal subsidies and technology giant Apple Inc must pay an additional 13 billion euros (US$14.5 billion) in taxes. Other technology behemoths, such as Facebook and Google, fear they may be next in the firing line to pay additional taxes.

As a way of enticing foreign companies to invest in Ireland, its government has for a long time provided companies with a favorable rate of corporation tax. However, other European countries have been unable to compete on a level playing field. The US government is also unhappy with the situation, since it cannot collect taxes on the profits of US companies made overseas.

According to the investigation carried out by the European Commission, Apple paid between 0.005 and 1 percent tax on the profits it made in European markets. Not only that, nearly two-thirds of the profits Apple made in other markets around the world pass through subsidiaries registered for tax purposes in Ireland.

Both the Irish government and Apple have already stated they intend to appeal the EU’s decision. How this case plays out will be crucial in determining whether America’s large corporations will decide to pull out of Ireland in the future, and will have a far-reaching impact on corporations with subsidiaries based in Europe.

(CNA, translated by Edward Jones)






1. tax benefit n. phr.


(shui4 wu4 you1 hui4 cuo4 shi1)

2. illegal subsidy n. phr.


(wei2 fa3 bu3 zhu4)

3. corporation tax n. phr.


(qi4 ye4 shui4)

4. subsidiary n.


(zi3 gong1 si1)


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