No fine for Apple. Apple can almost look entirely innocent on this, they asked Ireland to look at how they've structured their tax affairs knowing full well what impact this would have on their tax bill. However Ireland agreed to it, even though it shouldn't have.

The EU has now stepped in and clarified that Ireland should not have allowed this in the first place.

Shouldn't Ireland also take the blame here? If not, this sets a dangerous precedent for future governments who can sek companies to set shop but then back out once courts rule against. I mean, Ireland here comes out with no culpability.

Yes, the way I imagine most people will take this story is that Apple avoided taxes but really Ireland allowed them to contrive a tax structure that resulted in a lower tax bill. Apple must have known this would happen some day, I'd imagine they would have taken advice on it at the time and someone somewhere calculated that even if this happened, it was still worthwhile. So Apple isn't completely innocent but it's really Ireland at fault here.

There is no direct impact for Ireland e.g. a fine but it will create uncertainty for others already operating in Ireland and those considering investment. This uncertainty can be very bad for Ireland for years to come, so there will almost certainly be a penalty, albeit an indirect one.

Not quite. It's possible they'll feel the effect of the 1,000+ overseas companies with a presence in Ireland reassessing the pros and cons for their being there.

To whom should a country and its taxpayers be culpable in this situation? What would be the appropriate form of punishment?

WHAT the punishment would be could be a matter of discussion. My point was there SHOULD be some punishment. I can't imagine a case where Ireland walks out of this unscathed.

Their punishment, in this case, is having the EU step in and dictate what their tax laws should be, overriding Ireland's own tax laws.

To the European Union, I would think. Other European countries which are abiding to the rules are losing companies to those who countries offer unfair tax benefits.

The article literally says that EC told IRELAND to recover the due tax from apple. Apple is not being fined - Ireland is being told to sort out their tax system - it just happens that if they do, Apple will have to pay a lot of tax.

Apple is not fined

Instead they have to pay back the billions that they supposedly should have paid.

They are not fined, they are being told to pay what they owe.

Imagine your country offers a tax refund for installing solar panels. Because of this, you decide to buy and install solar panels. Lateron, it is decided that your country shouldn't have offered this refund for this or that reason.

Would you feel that it is fair that you have to pay up, instead of the institution that wrongfully offered you tax refunds?

That's a bad argument because:

1) Apple would have sold their stuff in Europe whether they had to pay full taxes or not, they only wanted a discount. I would probably not pay for the solar panels because I can't afford them.

2) Solar panels are very expensive and would make a huge dent in my balance. That's not the case for Apple.