Apple and Ireland have been trying to fight the European Union ruling on Apple’s tax situation in the country for some time. The EU had accused Ireland and Apple of having an unfair tax deal and had ordered Apple to pay Ireland €14 billion. It looks like the money has now been paid and the case has been closed by the EU regulators.
Today Irish Minister of Finance @Paschald confirmed the full recovery of €14 bn of illegal aid to Apple (unpaid taxes). Good. So we can close the Court action on recovery.
— Margrethe Vestager (@vestager) September 18, 2018
As there is no official statement from Apple and it is not clear as yet on whether the EU ruling is still being appealed by Apple and Ireland or whether the matter has now been closed.
The Background of the Case
The controversy began in 2016 when the European Commission concluded that Ireland had granted undue tax benefits to Apple, allowing the tech giant to pay substantially less tax than other businesses over many years. This decision was part of a broader EU crackdown on tax avoidance by multinational corporations. The Commission argued that the tax arrangements constituted illegal state aid, which distorted competition within the EU.
Apple and Ireland both contested the ruling, arguing that the tax arrangements were in line with Irish and EU law. Apple claimed that it was the largest taxpayer in the world and that it had paid every cent it owed. Ireland, on the other hand, was concerned about the implications of the ruling on its sovereignty and its ability to set its own tax policies.
Implications of the Ruling
The €14 billion payment, which includes interest, was placed in an escrow account while the appeals process was ongoing. This was one of the largest tax penalties ever imposed by the EU, and it sent shockwaves through the business community. Many multinational companies have used Ireland as a base for their European operations due to its favorable tax regime, and the ruling raised questions about the future of such arrangements.
The case also highlighted the broader issue of tax avoidance by multinational corporations. The EU has been increasingly focused on ensuring that companies pay their fair share of taxes, and this case was seen as a landmark in that effort. It has led to increased scrutiny of tax arrangements across the EU and has prompted several countries to re-examine their tax policies.
Despite the payment, the legal battle may not be over. Both Apple and Ireland have continued to appeal the decision, arguing that the Commission overstepped its authority. The outcome of these appeals could have significant implications for the future of tax policy in the EU and for the relationship between national governments and multinational corporations.
In conclusion, while the payment of the €14 billion marks a significant development in the case, it is not necessarily the end of the story. The ongoing appeals process means that the final outcome is still uncertain, and the case will continue to be closely watched by businesses, policymakers, and legal experts around the world.
Source Ars Technica
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