Apple Benefits with €13 Billion Irish Tax Bill Overturn
In recent news, Apple no longer has to pay €13 to Ireland comprising of black taxes after the company won an appeal undertaken at the highest court of the European Union. The case followed a record ruling against Apple in 2016 by the European Union. The General Court declared that the sum has been annulled since investigation shows that Apple was complying with the competition rules. This is a tragic setback for the EU that is currently fighting alleged tax violence.
Apple is the largest taxpayer in the world and has said in a recent statement that they are proud to legally undertake every standardized rule in society. The Irish government never gave the US giant any special treatment during the ordeal. The collective amount was a combination of standards of Irish taxation rules. Margrethe Vestager, EU Competition Commissioner was heading the hearing. The action was brought into course by the European Commission after it was claimed that Ireland was allowing Apple to attribute its collective EU profits directly to an Irish head office. All this existed only on paper that enabled them to avoid paying tax on EU revenues.
Constituted legal aid has been given to Apple by the Irish state as per the commission. The Irish government argued regarding the overturn saying that the loss was large enough and it would have paved the way for other businesses to set their foundation in the country. Ireland has one of the lowest corporate tax rates under the EU. It is also the base for Apple’s business outflow for Arica, Europe, and the Middle East. The Luxembourg General Court ruled on Wednesday that there is not sufficient evidence to support that Apple was getting away with preferential treatment.
This could be a stroke of bad news when the EU is trying to bridge the gap of corporate tax avoidance. Rulings of companies like Nike and Ikea are also in line. According to partner and head of law firm Pinsent Masons, Jason Collins, this victory proves a lot of innate legalities of the European courts. This has to potential to become significant case studies for other companies who want to expand their reach outside of their home countries. However, Brussels will appeal in the coming times and the EU will continue to put in their efforts in tracking tax avoidance by these multi-national companies. This case also brought about the importance of applying legal pressure in this area so that in the future, business and economy can progress without any discrepancies.
