On Wednesday, the Cupertino, California-based manufacturer of iPhone, Apple Inc., had reckoned a landmark breakthrough at its legal battle against $15 billion in Irish back taxes, as the United States’ largest taxpayer had scored a major victory over EU in the Europe’s second-largest court that ruled on late on the day that the EU order of €13 billion in Irish back taxes was unlawful adding that the EU competition commission should go through a sweeping reform in order to block the legal loopholes that the US-based tech tycoons had long been capitalizing.
In point of fact, nearly four years ago, the European Commission had ordered the US-based tech conglomerate to lay off a jawdropping total of $15 billion as a punitive measure due to its illicit usage of Irish tax rulings that technically had been reducing the companies tax burden for more than two decades to as low as 0.005%.
In factuality, a number of US-based tech companies had averted tens of billions of euros in taxations by registering their subsidiaries in Ireland, the country that intentionally had created a tax loophole in order to lure away the big-league tech conglomerates.
EU was wrong to say Apple’s Irish subsidies were granted selective economic advantage, said the court
Meanwhile, rejecting EU Competition Commission’s complaint that two of the Irish subsidiaries of Apple Inc.
such as Apple Sales International and Apple Operations Europe, under which the US tech behemoth had been showing off their earnings in the bloc, had granted a selective economic advantage, the bloc’s second-highest court ruled on Wednesday, “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”.
As a consequential repercussion of the court verdict, Apple Inc. had welcomed the ruling saying that the company had not been worried on how much it should pay, instead it was fretted over where it was required to pay off the taxes, while cheering over the latest blow to EU Competition Commission, a spokesperson for the Irish Government was quoted saying that the country had never offered special treatments to any US company.