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Tax advantage: the EU appeals on the 13 billion euros requested from Apple

2020-09-25T16:32:49.415Z


This summer, a European court overturned a decision ordering the American giant to reimburse Ireland for undue tax benefits.


The new episode of the Irish tax soap opera between Apple and the European Commission could well last two more years.

On Friday, Brussels appealed against the judgment of the General Court of the European Union: the latter canceled on July 15 a decision of the European Commission - which dated back to 2016 - forcing Apple to reimburse 13 billion euros tax benefits which it equates to illegal state aid.

Between 2003 and 2014, Apple repatriated all of its profits in Europe to Ireland to benefit from favorable tax treatment.

From 1% in 2003, the applied rate was reduced to 0.005% in 2014, according to Commission calculations.

Refuting this argument, the Irish state had itself seized European justice, just like Apple.

In July, the Luxembourg Court ruled in his favor, ruling that Brussels had failed to demonstrate that the advantages in question could be considered as state aid.

This decision of the European judges had been a huge setback for the Vice-President of the European Commission, Margrethe Vestager, in charge of competition, and a victory for Apple and Ireland.

"

In its judgment, the General Court made a number of errors of law

," believes Margrethe Vestager, who considers that the judgment also raises other legal questions "to apply the rules on State aid".

The Commission's appeal "will

not alter the factual findings of the Tribunal, which prove that we have always obeyed the law in Ireland," as everywhere we operate,

"Apple said in a statement.

For Irish Finance Minister Paschal Donohoe, Apple has paid "the correct amount of tax required by law" in taxes.

The Irish government is opposed to European plans for fiscal harmonization or a tax on digital giants.

For now, the 13 billion, plus interest, are in a blocked account and will not be released until after a final decision by the European justice system.

We must continue to use all the tools at our disposal to ensure that companies pay their fair share of taxes,

” explained Margrethe Vestager.

Otherwise, "

the public budget and citizens find themselves deprived of funds for essential investments, responding to a need more urgent than ever to support Europe's economic recovery

".

Source: lefigaro

All news articles on 2020-09-25

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