For once, there will be a positive financial news from ölandet.
According to a recommendation by EU finance ministers, Ireland should use Apple’s back taxes of 13 billion euros to pay off the national debt. It said EU sources said on Wednesday. Formally, however, the Irish Government is completely free to decide how the money will be used.
On Tuesday, the European Commission decided that Ireland’s tax arrangements for Apple constitute illegal state aid. Therefore, Apple is guilty Ireland 13 billion euros in unpaid taxes.
“Ireland can do what they want with the money. They go to the Treasury,” said Commission spokesman on competition matters Ricardo Cardoso at a briefing on Wednesday.
But EU sources pointed out that the EU finance ministers in the country specific recommendation in June called on Ireland to use all the unexpected extra revenues to accelerate the reduction of government debt.
However, the mentioned ECOFIN recommendation just extra income from higher growth, lower interest payments and sales of assets.
because of the financial crisis stage Ireland’s public debt from 42 percent of GDP in 2008 to 120 percent in 2012. the first quarter of this year, the debt of 80.4 percent, equivalent to 207 billion euros , according to Eurostat.
Thirteen billion would thus constitute 6.3 percent of the debt, a significant reduction of the country ..
Both Ireland and Apple said on Tuesday that they intend to appeal against the Commission decision to the European Court of Justice. But despite the lawsuit must Ireland require the money immediately.
One possibility is to put the money in an escrow account in the process, which, however, belong to the state. The amount can also be reduced if other EU countries want to tax profits arising in their countries but then moved to Ireland.
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