The day is important for Apple, because the General Court of the European Union has just ruled to determine whether or not the company will have to pay tax arrears to Ireland. Suffice it to say that the amount involved was significant for the firm, as it stood at more than 13 billion dollars.
Apple wins this legal battle
Today, the General Court annulled the Commission's decision, stating that it had failed to prove the existence of an economic advantage from Ireland in favor of Apple.
This decision follows a case between Apple and the EU which dates back several years. Four years ago, the European Commission declared that the brand had entered into a tax agreement with the Irish authorities in order to pay as little tax as possible.
Ireland is known for having several tax benefits that prevent foreign companies from paying too much tax, which explains why large multinationals like Apple go there. The latter would have repatriated all of its European (and other) income to the territory between 2003 and 2014 to pay less taxes.
For the European authorities,this agreement was simply illegal, so much so that they demanded - in August 2016 - that the American company put its hand in its pocket. At that time, Apple and the Irish authorities defended themselves by asserting that the deal was legal. In 2017, the Commission referred Ireland to the Court of Justice so that the country could recover the sum concerned. Apple appealed.
The European Commissioner for Competition, Margrethe Vestager, has made the payment of taxes by companies one of her priorities. However, the Commission is still far from its objectives, as this case shows. Last year, it also lost to Starbucks after demanding that the group repay up to 30 million euros in tax arrears in the Netherlands.
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By : Keleops AG
