EU Commission appeals after losing Apple $15 billion tax case



by   |  VIEW 663

EU Commission appeals after losing Apple $15 billion tax case

On Friday, the European Commission had issued a statement saying that it would be appealing a court decision that had ruled earlier this year the Cupertino-based iPhone maker Apple Inc. didn’t need to repay a jawdropping $15 billion in Irish back taxes.

In point of fact, the EU Commission appeal came forth months after the American tech tycoon had bagged a large-scale legal victory at its protracted battle with the EU’s executive commission, which has long been vying to vent out a way to prevent the tech firms, mostly based on the United States, from striking special tax deal with individual EU nations such as Ireland that has been benefitting from an ultra-low corporate taxes for multinational entities more than a decade.

Besides, according to the EU’s General Court ruling that went in favour of Apple Inc. in mid-July this year, the court had ruled that the EU Commission had wrongfully decided in 2016 that the Apple Inc.

had been provided with an illegal state aid in Ireland while it had struck a low-tax accord with the Irish authorities.

EU Commission reopens Apple’s $15 billion in Irish back tax case

In the latest flashpoint of what could be contemplated as the EU Commission’s last-ditch move to prevent multinational conglomerates from averting taxes in Europe by reporting their Europe-wide profits at an effective rate of well under 1 per cent in Ireland through their Irish-registered subsidiaries, EU Commission Executive Vice President Margrethe Vestager said on Friday, “The EU Commission respectfully considers that in its judgment the General Court has made a number of errors of law.

For this reason, the Commission is bringing this matter before the European Court of Justice,” which happened to be the highest court in the 27-nation bloc. The European Commission accused Apple Inc. in 2016 of capitalizing on two shell companies in Ireland that allowed the American tech behemoth to report its Europe-wide profits with a tax well under 1 per cent between 2003 and 2014, eventually leading to a $15 billion in punitive measures in Irish back taxes.