Apple “was accused by the European Commission this week of striking ‘sweetheart’ agreements with the Irish government dating back to 1991 in which the terms under which Apple would be taxed were effectively dictated by the company. The Commission alleges these agreements enabled Apple to avoid paying hundreds of millions of dollars in corporate taxes potentially owed to the Irish state,” Vincent Boland reports for Financial Times. “In return for minimal tax bills, the allegation continues, Apple poured investment into Ireland, and Cork in particular. That has created some 4,000 jobs over the past three decades at the plant in the Hollyhill industrial estate.”

“Apple and the Irish government deny there are any sweetheart deals related to ‘transfer pricing,’ and the company is adamant that it pays all the taxes owes on the operations it carries out behind Hollyhill’s corporate-grey walls. And many people in the ‘real capital of Ireland,’ as the people of Cork like to think of their city, are ready to defend their prized foreign investor,” Boland reports. “At Cork’s magnificent City Hall, mayor Mary Shields… [said], ‘I would prefer if companies complied with the tax laws of the countries they are in, as I believe Apple are doing,’ she says… ‘Obviously,’ she adds, ‘other countries would love to have Apple. But they are in Cork and we want to keep them here.'”

Read more in the full article here.

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