Good morning and welcome to Monday’s Lowdown.
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Ireland will challenge the European Union’s tax order to collect €13bn in back taxes from Apple.
According to the Guardian, the Irish finance department will accuse the EU’s competition authorities of unfairness, exceeding their competence and authority, and seeking to breach Ireland’s sovereignty in national tax affairs.
Dublin said in its formal legal submission that its low taxes are part of its sales pitch to foreign investors. Back in August, The EU competitioner commissioner ordered Apple to pay Ireland €13bn for underpayments of tax.
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Accountancy firm Eaves and co has urged ICAEW in an open letter to stand up for its members.
Responding to the government’s tax avoidance crackdown, whereby agents who promote avoidance schemes later defeated by HMRC could face penalties, the firm asked: “Why should ICAEW Members, taught to act ethically and responsibly, be fined and punished, for example, for simply referring a client to advice from a QC?”
In the blog post, the firm said: “I worked hard to get my qualifications as an FCA. It has been something I have been proud of. Thanks to Government propaganda, it now feels like I am one step down from a shoplifter.”
Signing off the letter, the firm told the body: “You want our subs. You should protect all of us, even if that means telling the Government they are wrong.”
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A Californian-based accountant used fraudulently used his company’s credit card to spend $1m on the Game of War app.
According to the BBC, Kevin Lee pleaded guilty to wire funding $4.8m over the course of nearly seven years. He used the company card to buy luxury cars, plastic surgery and season tickets to the San Francisco 49ers.
Lee started to hide his fraudulent transactions in 2008 and continued to do so until March 2015. He will be sentenced in May.