The Irish government has spent more than 440,000 euros ($467,000) on a report to defend the tax arrangements between the country and Apple. The commissioned report was compiled by consultancy firm PricewaterhouseCoopers, reports the Irish Journal.
The report supported the way the US multinational allocated profits to its Irish operations, the article adds. Although European officials didn’t request the report, it was handed to the EU in February 2016 – about six months before the European Commission, Europe’s anti-trust and consumer investigation agency, revealed its finding that Ireland gave Apple illegal state aid worth €13 billion.
The European Commission claims that Ireland, Luxembourg and the Netherlands have attracted investment and jobs by helping big companies avoid tax in other countries, including EU members. The commission suspects Ireland was too lenient in rulings it gave to Apple and which helped the company shield tens of billions of dollars in profit from taxation. At 12.5%, Ireland’s corporate tax rate beats the U.S. rate of 35%. However, participating companies don’t pay that 12.5% under the double Irish structure.
Ireland’s cabinet has agreed to join Apple in appealing against a €13 billion (about $14.5 billion) back tax demand that the European Commission has levied against the Cupertino, California-based company.