Ireland: Apple does not have to pay additional taxes

Ireland: Apple does not have to pay additional taxes The EU Commission suffers in the dispute over a record tax back payment of 13 billion euros for Apple in Ireland. The EU court in Luxembourg annulled the Commission's lavish additional demand in 2016. In the dispute over a record tax payment of 13 billion euros for Apple in Ireland; the EU Commission suffered a defeat in court. The EU court in Luxembourg annulled the Commission's 2016 request. The Commission was unable to show that Apple's tax arrangements in Ireland in 1991 and 2007 constituted unjustified state aid; the judges said. However; the decision is most likely not the end of the politically charged conflict. It is considered very likely that the dispute will continue at the European Court of Justice (ECJ). The Commission has two months to appeal. EU Competition Commissioner Margrethe Vestager asked Apple to repay the billion in Ireland in August 2016 because the country had granted the company unlawful special treatment in terms of tax conditions. Ireland and Apple resisted.  

Don't double tax

The key question in the process was how much of the money accumulated in Ireland should have been taxed in the country. The iPhone group had stressed before the EU court that the earnings of the two Irish subsidiaries; which are at issue; were taxable primarily in the United States. That's why Apple saw double checkout. The Commission also failed to convince the court that Apple was getting special rates in Ireland that were not available to other companies. The argument is not just about a lot of money. For the Commission; it is a massive setback in its longstanding disputes with individual member countries such as Luxembourg over tax conditions for companies. For Commissioner Vestager; who is often celebrated in Europe; the sensational case was a highlight of her career to date. The case also fueled the US-Europe dispute over the taxation of American companies. You might also be in interested:

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