The EU previously ruled that Apple must pay Ireland €13 billion in taxes after it ruled that both Apple and Ireland had apparently reached an unfair agreement on taxation.
The EU accused Ireland of giving Apple a special deal and ended up saying that Apple had to pay Ireland €13 billion in tax, both Apple and Ireland objected to the ruling.
Apple has lodged a formal appeal on the ruling and now the company is headed to court next month, the appeal will take place on the 17th and 18th of September.
Background of the Case
The controversy began when the European Commission conducted an investigation into Apple’s tax arrangements in Ireland. The Commission found that Ireland had granted undue tax benefits to Apple, which allowed the tech giant to pay substantially less tax than other businesses over many years. This was seen as a violation of EU state aid rules, which are designed to ensure fair competition within the European Union.
The €13 billion figure represents the amount of unpaid taxes that the EU believes Apple owes Ireland for the period between 2003 and 2014. The ruling was a landmark decision and has significant implications for both multinational corporations and EU member states.
Implications of the Ruling
The ruling has far-reaching implications. For Apple, paying €13 billion would be a significant financial hit, although the company has ample reserves to cover the amount. More importantly, it sets a precedent that could affect other multinational companies operating in Europe. If the ruling is upheld, it could lead to more stringent scrutiny of tax arrangements between EU member states and large corporations.
For Ireland, the ruling is a double-edged sword. On one hand, receiving €13 billion would be a substantial windfall for the country’s finances. On the other hand, the ruling challenges Ireland’s tax policies, which have been a cornerstone of its economic strategy to attract foreign investment. Ireland fears that upholding the ruling could deter other multinational companies from setting up operations in the country.
The appeal will be a joint one with both Ireland and Apple working together to appeal the ruling, it will be interesting to see what happens.
The Appeal Process
The appeal process is expected to be complex and lengthy. Both Apple and Ireland argue that the European Commission has misinterpreted Irish law and the facts of the case. They contend that the tax arrangements were in line with Irish and EU law and that the Commission’s decision is an overreach of its authority.
The appeal will be heard by the General Court of the European Union, which is the second-highest court in the EU. If the General Court rules against Apple and Ireland, they have the option to take the case to the European Court of Justice, the highest court in the EU.
The appeal will take place on the 17th and 18th of September. This will be the first part in the case and it could lead to a longer trial, unless a conclusion is reached at the two-day trial next month.
What to Expect
Legal experts are divided on the likely outcome of the appeal. Some believe that the European Commission’s case is strong and that the ruling will be upheld. Others argue that Apple and Ireland have a good chance of overturning the decision, particularly given the complexity of international tax law.
Regardless of the outcome, the case is likely to have significant implications for international tax policy and the relationship between multinational corporations and EU member states. It will be closely watched by governments, businesses, and legal experts around the world.
Source 9 to 5 Mac
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