EU Seeks To Overturn Apple's Victory in $15.8 Billion Tax Dispute
The European Commission plans to appeal Apple Inc’s (Nasdaq: AAPL) victory in a $13 billion euro ($15.8 billion) tax dispute, saying the European Union’s General Court made legal errors when it ruled the tech giant’s business in the Republic of Ireland was not on the hook for back taxes.
In a filing for appeal released Monday, the Commission said it will challenge a July 2020 ruling, which rejected arguments that Apple struck an illegal tax deal with Irish officials, giving the company an unfair tax advantage.
“The General Court’s failure to properly consider the structure and content of the decision and the explanations in the Commission’s written submissions on the functions performed by the head offices and the Irish branches is a breach of procedure,” the Commission said in its filing.
The European Commission is appealing to the European Court of Justice, which will hold a hearing on the case in coming months.
In a statement provided to Reuters, Apple said, “After a thorough review of the facts and the Commission’s claims, the General Court was clear in their determination that Apple has always abided by the law in Ireland, as we do everywhere we operate.”
The stems from a 2016 claim by the Commission that the Silicon-Valley based company was funneling all sales from anywhere in the EU through its European headquarters in Ireland, which had one of the lowest corporate tax rates compared to other countries.
The Commission claimed the Irish government further sweetened the deal by reducing Apple’s tax burden and ultimately ruled the arrangement was illegal. The Commission found the Irish government broke the law and said Apple owed the taxes that should have been collected.
In response, Ireland and Apple decided to appeal the Commission’s decision, with the company arguing the order to repay taxes “defies reality and common sense,” CNBC reported.
Source: Equities News