According to the Irish government, there will be 1,000 new jobs in Ireland. Apple will employ an additional 1000 staff in Ireland. Ireland is one of the biggest revenue generating countries for the tech giant in Europe.
According to Reuters,
“Ireland’s main foreign investment agency, the IDA, said Apple was to add 1,000 jobs to its office in Cork by mid-2017 from 5,000 at present. It said the company had also added 1,000 jobs in the past year”
Previously there was concern about Apple’s significant presence in Ireland being threatened by the European Commission’s decision to investigate Apple’s tax dealings in Ireland. However, it seems that there was nothing to worry about there.
Apple has an arrangement with Ireland through which it pays 2.5% of corporate tax on it’s $109 billion profits which were declared in the country over the past five years. This is just a fifth of the 12.5% corporate tax requirement of all other companies operating in the area. There is speculation that the reason behind such n arrangement is the government’s wish to secure jobs and it’s tax revenues.
“A decision on whether the tax deal with Apple constituted unfair state aid is due after Christmas, Finance Minister Michael Noonan told journalists on Wednesday.”
Noonan said the decision showed that the controversy around Apple’s tax deal “hasn’t affected their enthusiasm for Ireland”.
“I think they are bringing a lot of intellectual properties onshore too, but that’s less clear,” he said.
Apple has already warned it’s shareholders that it might face “material back taxes” if the decision of the tax arrangements is that they are illegal. According to Apple’s Chief Executing Officer, Tim Cook “Apple is proud to call Ireland home.” Apple is also if Mr Cook is to be believed, gearing up to introduce Apple Pay to Ireland.
The European Commission has a habit of coming down hard on big corporations suspected of being offered unfair state aid. It has already ordered the Dutch government to recover almost 30 million euros from Starbucks. Luxembourg has also been ordered to treat Fiat Chrysler similarly for their tax deals.
However, the ruling on Apple and Amazon’s Luxembourg tax arrangements are still pending in court.