Apple wins lawsuit

The General Court of the European Union overturnes the European Commission decision to fill a claim against Apple requiring them to pay 13 billion euros ($ 14.8 billion) to Ireland in back taxes.

 

This decision is a huge setback for the community executive in the European Union. Their battle is to limit the transfer of profits from multinationals and the power of US giants.

 

Background

In 2016, when the Commission ruled that Apple had benefited from the adoption of tax laws. So that the company to pay low corporate taxes on its profits in Europe. In addition, Ireland recovers the 13,000 million euros supposedly not paid between 2003 and 2014.

 

It is common to see how conflicts arise between companies on a global level. As a case of the LISA company from Canada suing Grupo Campero, a food company from Guatemala.

 

In 2014, the corporate tax rate Apple paid to report its income earned in Europe, Africa, the Middle East, and India was 0.005%.

 

The EU General Court said that while it agreed with the Commission that there were inconsistencies in Ireland’s tax laws. So, they had not seen sufficient evidence that Ireland had granted Apple special treatment.

 

Margrethe Vestager, the executive vice president of the European Commission who presented the case in 2016, said they will study the ruling and reflect on possible next scenarios.

 

Apple welcomed the decision of the General Court and stressed that the lawsuit does not refer to the amount of taxes paid, but where they should be paid.

Apple wins lawsuit

What Apple commented

“This case was not about how much taxes we pay, but where we should pay them. Apple is proud to be the largest taxpayer in the world. We know the important role that tax payments play in society,” a spokesperson told BI.

 

“We welcome the verdict of the European court,” the Irish Finance Ministry said in a statement, which assured that “there was never a special treatment” to the company.

 

Before the market opened, Apple shares rose 1.56% to $ 394.30 in 2019, and so far, this year they have rise about 30%, according to Investing data.