The European Commission in 2016 fined Apple for alleged tax evasion. However, the company has managed to appeal this fine.
The European court of justice overturned the decision of the European Commission, according to which Apple had to pay record 13 billion euros (14,9 billion) in tax payments to the government of Ireland. It is reported by the Informant Tech, citing The Verge.
The decision imposing a fine has taken the European Commission in 2016, and it is regarded as a significant victory for Margrethe Vestager, head of the Antimonopoly Department of EU. It is believed that the iPhone maker with a deal with the government of Ireland paid an effective tax rate of less than 1 percent, which is a unique preferential transaction, which is considered “illegal state aid”. “Member States are unable to provide tax relief to individual companies is illegal in accordance with the rules of state aid of the EU. The Commission’s investigation concluded that Ireland gave Apple illegal tax benefits that allowed her to pay significantly less in taxes for many years,” said Vestager in 2016.
Both Apple and the Irish government denied this, but Apple CEO Tim cook called the decision “a total political nonsense.” The Irish government appealed the penalty, hoping to refute allegations that the country is essentially a tax haven for the block of the EU. And on Wednesday, July 15, the European court of justice overturned the decision from 2016, stating that “the Commission failed to show the required legal standard that Apple has the advantage.” “The court finds that the Commission has not proved in its alternative argument that the challenged tax decisions were the result of the Irish tax authorities,” said the court.
– EU Court of Justice (@EUCourtPress) July 15, 2020
Irish Ministry of Finance welcomed the decision, saying: “Ireland has always made clear that there was no special relationship to Apple. Assessed the correct amount of Irish tax taxation in accordance with the ordinary Irish tax rules”. Apple also welcomed the decision, saying that the case “is not about how much we pay and where we have to pay,” according to Bloomberg. The European Commission now has two months and ten days in which to appeal to the European court, the Supreme court of the EU. His decision will be final.