Apple told to repay $14.5 billion in back taxes - KWWL - Eastern Iowa Breaking News, Weather, Closings

Apple told to repay $14.5 billion in back taxes

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BRUSSELS (AP) -- The European Union says Ireland has given illegal tax benefits worth up to 13 billion euros ($14.5 billion) to Apple Inc. and must now recover the unpaid back taxes from the U.S. technology company, plus interest.

EU Competition Commission Margrethe Vestager said Tuesday: "Member states cannot give tax benefits to selected companies--this is illegal under EU state aid rules."

She said a three-year investigation found Ireland granted such lavish tax breaks to Apple over many years that the multinational's effective corporate tax rate on its European profits dropped from 1 percent in 2003 to a mere 0.0005 percent in 2014.

The Commission said "Ireland must now recover the unpaid taxes in Ireland from Apple for the years 2003 to 2014 of up to 13 billion euros ($14.5 billion), plus interest."

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