HomeHubsAppleApple takes EU's €13 billion tax order to court

Apple takes EU’s €13 billion tax order to court

Reader's Pick

Apple will launch a legal challenge to a European Commission order to pay 13 billion euros ($14.4 billion) in Irish back taxes in a landmark case in the EU’s crackdown on tax avoidance by multinational companies.

The iPhone maker is expected to send a six-man delegation headed by Chief Financial Officer Luca Maestri to the two-day court hearing at the Luxembourg-based General Court, the EU’s second-highest court.

In August 2016, the Commission said tax rulings by Ireland in 1991 and in 2007 had artificially reduced Apple‘s tax burden for over two decades, effectively making it illegal state aid.

European Competition Commissioner Margrethe Vestager pointed to a 0.005% tax rate paid by Apple’s main Irish unit in 2014 as an example of the unusually low payments by the company.

- Advertisement -

Apple is expected to argue that it did nothing wrong as it had followed Irish and U.S. tax laws. It made similar arguments in a blog following an EU tax ruling a couple of years ago.

It will tell the court that the bulk of its taxes are owed to the United States because the majority of the value in its products including design, engineering and development, is created there.

Ireland, which has accused the Commission of exceeding its powers and interfering with the EU member’s national sovereignty over tax affairs, is also challenging the EU ruling.

The Irish tax regime is a key attraction for multinational companies, which employ around 10% of the country’s workforce.

- Advertisement -

Luxembourg is backing Ireland while Poland is supporting the Commission. Vestager has also gone after sweetheart deals offered by the Netherlands to Starbucks, Luxembourg to Amazon, Fiat and Engie as well as a British tax scheme for multinationals.

The EU executive’s tax crackdown suffered a setback in February this year when the General Court dismissed its ruling against a Belgian tax break that benefited BP, BASF and more than 30 other multinationals, saying that it was not an aid scheme.

However, the Commission relaunched this case on Monday.

The joint Apple cases are T-778/16 Ireland v Commission and T-892/16 Apple Sales International and Apple Operations Europe v Commission.

close

Stay on top of Budget 2023 with our newsletter

We don’t spam! Read our privacy policy for more info.

- Advertisement -

Read latest Business News and Startup news on TechGraph. Watch live and latest news on TechGraph TV. Follow us on Facebook or follow us on Twitter and Instagram. Listen audio news from TechGraph Briefings on Spotify, Google Podcast, Amazon Music & on Apple Podcast.
 

Krishna Mali
Krishna Mali
Founder & Editor of TechGraph.

Latest News

Promoted Links

Related Stories

Sino-US trade war offers Europe’s chance to bank more Chinese reserves: Analysis

Should European countries want the euro to replace the dollar as the world's do...

Japan approves 26 trillion yen as economic stimulus package to combat overseas risks

Japan's cabinet approved an economic stimulus package worth 26 trillion yen ($2...

1Win App: Review India Apk for Android and iOS

The company 1Win has been successfully operating in the markets of many countri...

Employees union seeks FIR against Jet Airways boss Naresh Goyal, Vinay Dube and on SBI Chairman

The employee union of Jet Airways, which is facing its worst crisis, Friday sou...

Samsung Electronics asks its shareholders to use electronic voting for upcoming AGM

Technology giant Samsung Electronics has adopted electronic voting for the firs...

Rahul Gandhi hits on RCEP says, ‘Make in India’ has become ‘Buy from China’

Asserting that "Make in India" has become "Buy from China," Congress leader Rah...

NASA astronauts to carry first ever all-female spacewalk on 29 March

Two NASA astronauts are scheduled to carry out the first ever all-female spacew...

Logistics 4.0: Creating a value chain through smart interconnected technologies

Businesses are keeping up with the changing digital environment to stay competi...

Budget 2022-23: Technology, SaaS, AI & ML Sector Reactions

Technology market reaction on Budget 2022-23: As Finance Minister Nirmala Sitha...

Bitcoin Price Crash

Bitcoin crypto was launched in 2009. It was the beginning of the digital assets...