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Apple Inc (AAPL): Irish Government Believes EU Tax Ruling Is Unfair, Backs Appeal

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Irish government supports appeal on tax ruling by EU regarding Apple

During the last week of August, news emerged that the European Commission has directed the government of Ireland to recover the complete amount from Apple Inc (NASDAQ:AAPL) which was given in form of illicit tax benefits to the company by the country’s authorities.

The Commission issued a press release on August 30, which highlighted an in-depth state aid investigation, and concluded that Ireland had granted illegal tax benefits since 1991. The ruling required that the country’s government should recoup $14.5 billion. Moreover, the European authority alleges Ireland’s government to have offered the Cupertino, California based tech giant tax payments of almost zero to 1% on its profits generated in the region.

Yesterday, news surfaced that Irish lawmakers have voted to support the appeal against the Commission’s ruling, even though several critics opposed the lawmakers’ decision and say that the government should recover the money.

During a debate ahead of the evening vote yesterday, the Irish government and its allies, who represent a majority in the parliament, insisted that the ruling by Europe’s supreme authority is unjust. In addition to this, they said it would damage Ireland’s future ability to lure foreign investment.

On the other hand, Ireland’s opponents in this case claimed that if the government supports the appeal, it would further strengthen the country’s image as a tax haven.

Anyhow, industry experts believe that this large tax windfall is very attractive for several Irish lawmakers and voters. Additionally, many political parties have also urged the local government to accept the judgment by the Commission and allocate the recouped funds on a variety of new projects. But, according to a poll released this Monday, for a local television news show discovered that about 62% of the respondents backed the appeal by the lawmakers.

Amid such crisis, Apple has launched the highly-anticipated iPhone 7 yesterday. The latest smartphone comes with two variants, iPhone 7 and iPhone 7 Plus; the latter carries two rear cameras with different lens capacity.

While the iPhone 7 launch was not taken so well by the customers, the stock is down about 0.49% during today’s pre-market trading hours.

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