European Court Annuls EU’s U$15 Billion Apple Tax Decision
Europe’s second-top court on Wednesday rejected an EU order to iPhone maker Apple to pay 13 billion euros (US$14.78 billion) in Irish back taxes.
“The General Court annuls the contested decision because the Commission did not succeed in showing to the requisite legal standard that there was an advantage for the purposes of Article 107(1) TFEU1,” judges said, referring to EU competition rules.
The 2016 ruling and the record sum is part of the European Commission’s crackdown on sweetheart tax deals between multinationals and some EU countries.
The EU accused Ireland of allowing Apple to park revenue earned in Europe, Africa, the Middle East and India and sparing it almost any taxation.
Brussels said this gave Apple an advantage over other companies, allowing it to avoid Irish taxes between 2003 and 2014 of around 13 billion euros.
EU officials argued that constituted illegal “state aid” by Ireland.
Apple CEO Tim Cook slammed the accusation at the time as “total political crap” and an attempt by Europe to disrupt the way multinationals pay tax.
Apple says the profits in question were always intended to go to the United States where they were eventually transferred after a tax reform there.
Ireland called it an “astonishing” interpretation of tax law.
Neha writes articles on sectors including medicine, food, materials, and science & technology. A qualified statistician, she has the ability to observe and analyze the trends in global markets and write compelling articles that help CXOs in decision making. She is a bookworm and loves to read fiction, lifestyle, science and technology. Neha comes with 6 years of experience in content writing and editing that involves blog writing, preparation of study materials and OERs.