Apple has set up a battle with the European Union against a hefty fine of US$13.8bn.
The company has been fined by EU regulators who ordered Ireland, where Apple’s intellectual property licenses are reportedly located, to repay billions worth of unpaid taxes.
The tech company issued a statement in August this year, noting that they are currently the largest taxpayer in the world. The statement went on to say that if the EU ruling went against it, the company would pay 40% of all the corporate taxes collected in Ireland. Apple said it paid a 26% tax rate on its worldwide earnings, but said it was correct that it paid most of that in the US, according to the BBC.
“The way it gained pace was when the US senate sub-committee started looking at where US companies were paying tax. This was when it came to light that Apple weren’t paying tax in the US, and as far as records show. Apple had holding companies in Ireland, however the tech giants are claiming that their incomes will eventually be taxed, once the funds are brought over to the US.” Alex Webb reported for Bloomberg.
“We think Apple will find an appeal in the next few weeks.” adds Webb.
The EU “took unilateral action and retroactively changed the rules, disregarding decades of Irish tax law, US tax law, as well as global consensus on tax policy, that everyone has relied on,” Apple said in a statement.
It is predicted that Apple will have to pay its tax bill within weeks, although the money will be held in escrow. The final ruling from the EU could take years to be resolved.
ExxonMobil is legally challenging a $2m fine from the US Treasury for allegedly violating sanctions against Russia in 2014 while US Secretary of State Rex Tillerson was still overseeing the company.
BNP Paribas is the latest in a long line of financial service companies to be penalised for misconduct during the financial crisis on both sides of the Atlantic.
A study by the London-based insurance market warns that economic losses could be similar to losses unleashed by Superstorm Sandy in 2012.
Late payments were experienced by 64% of companies in 2016, a recent Coface report found.