“Apple and Ireland Officially Contest EU’s $14 Billion Tax Demand”

The spotlight once again shines on the critical EU ruling that mandates Apple to pay the staggerring $14 billion in taxes that the corporation allegedly dodged with the assistance of the Irish government—a charge branded as illegal aid by the EU. Apple and the Irish administration had previously signalled their defiance against the ruling, pledging to appeal it. Now, they are keeping their word. The Irish administration recently formalized its dissent with the ruling, revealing its objections in the public sphere. As reported by The Irish Times, the government’s stance is that the EU Commission grossly misunderstood Ireland’s tax laws, improperly determining that profits not linked to activities within Ireland were eligible for taxation there.

The European Commission is set to release its comprehensive ruling today, but is reportedly holding back certain commercially sensitive details from the public purview, at least temporarily. According to the commission, Ireland has intentionally privileged Apple and other American corporations in tax-related matters over the years, leading to the demand for Apple to reimburse the allegedly owed tax money. The commission opines that profits generated by Apple in non-American markets should have been taxable by Ireland, considering that Ireland hosts the tech giant’s primary international operations.

However, the Irish administration is pushing back, asserting that the commission overstepped its powers and meddled with national tax sovereignty. It accuses the commission of incorporating unconventional tax rules, disregarding necessary procedures and failing to give sufficient justifications for its decision.

Apple is not twiddling its thumbs either, launching a joint legal challenge with Ireland against the EU Commission. In a revealing interview with Reuters, Apple’s General Counsel Bruce Sewell and Chief Financial Officer Luca Maestri shared that the corporation intends to challenge the ruling in Europe’s second-highest court. Maestri argued that the commission inflated the significance of the company’s European headquarters in Cork, Ireland. European Competition Commissioner Margrethe Vestager maintains that Apple should pay tax in Ireland on all profits generated outside the United States, despite the fact that no engineering or intellectual property creations occur there—a suggestion Maestri dismisses as an “absurd theory”.

Overall, there is an air of a protracted conflict as a new administration waits in the wings, ready to take over in the United States next month. President-elect Trump campaigned promising a revamp of the US tax system, intentions that could lead to the repatriation of funds held by American corporations overseas to breathe life back into the American job market.

Image: CNN Money

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