Nepal | September 29, 2020

Apple wins EU court case over $15 billion in claimed taxes

Associated Press
Share Now:

BRUSSELS: A European Union high court on Wednesday ruled that technology giant Apple does not have to pay 13 billion euros ($15 billion) in back taxes to Ireland, as the EU’s executive commission wants.

The EU Commission had claimed in 2016 that Apple had an illegal sweetheart tax deal with Irish authorities. But the Luxembourg-based General Court said Wednesday that ”the Commission did not succeed in showing to the requisite legal standard that there was an advantage.”

It said in a statement that “the Commission was wrong to declare” that Apple “had been granted a selective economic advantage and, by extension, state aid.”

The ruling from the EU’s second-highest court can only be appealed on points of law.

The European Commission had ordered Apple to pay for gross underpayment of tax on profits across the European bloc from 2003 to 2014. The Commission concluded that Cupertino, California-based Apple used two shell companies incorporated in Ireland to permit Apple to report its Europe-wide profits at effective rates well under 1%.

The Irish government immediately welcomed the ruling. “Ireland has always been clear that there was no special treatment provided” to the U.S. company, it said in a statement. “Ireland appealed the Commission Decision on the basis that Ireland granted no state aid and the decision today from the Court supports that view.”

Even though taxation remains under the authority of its member countries, the EU is seeking to create a level playing field among the 27 nations by making sure special deals including ultra-low tax rates with multinationals, like the one between Ireland and Apple, are weeded out. The Trump administration has said that the EU is unduly targeting U.S. companies.

The ruling comes at a time when tax income for EU nations is especially welcome because of the economic impact of the coronavirus pandemic. At a time when cash-strapped households are suffering, the EU wants to make sure multinationals making profits on the continent pay their fair share, too.

Meanwhile, the EU Commission was to unveil new plans to combat tax fraud only hours after the ruling in Luxembourg.

“In times like these when we are passing multibillion-euro economic stimulus packages, we cannot afford to waste a single cent in tax revenue“, said EU legislator Markus Ferber of the Christian Democrat EPP Group.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

leicester city, Jamie Vardy

Vardy treble inspires Leicester to 5-2 win over Man City

MANCHESTER: A Jamie Vardy hat-trick coupled with goals from James Maddison and Youri Tielemans steered Leicester City to a stunning 5-2 win at Manchester City on Sunday and kept them top of the Premier League with a maximum nine points from three games. City had not conceded five go Read More...

Prominent personalities urge govt to save Dr KC

KATHMANDU, SEPTEMBER 27 A group of 33 citizens, who once held prominent positions, have urged the government to save the life of Dr Govinda KC, who has been staging a fast-unto-death demanding reform in the medical education sector for the past 14 days. Issuing a joint press release today they Read More...

La Liga, barcelona, Lionel Messi

Messi back in scoring business in dream start for Koeman

BARCELONA: Lionel Messi was back in scoring business for Barcelona on Sunday, leading them to a resounding 4-0 win at home against Villarreal in a near-perfect La Liga opener for the Catalans under new coach Ronald Koeman. Teenage forward Ansu Fati was in inspirational form for Barca, c Read More...

Atletico Madrid, Luis Suarez, La Liga

Suarez scores twice, gets assist as Atletico lay down marker

MADRID: Luis Suarez had a stunning impact on his debut for Atletico Madrid following his move from Barcelona, scoring twice and providing an assist as his side crushed Granada 6-1 at home in their first game of the La Liga season on Sunday. Suarez, who only completed his switch from Barc Read More...

Replace all Cabinet ministers: NCP Co-chair Dahal

KATHMANDU, SEPTEMBER 27 Co-chairs of the ruling Nepal Communist Party (NCP) — Pushpa Kamal Dahal and Prime Minister KP Sharma Oli — met today to discuss Cabinet reshuffle. A source close to Dahal told THT that Dahal asked Oli to replace all the ministers in his Cabinet, but the PM did not Read More...

CCTV surveillance/monitoring of kathmandu traffic

People told to be aware of fraudsters

KATHMANDU, SEPTEMBER 27 Police have urged people, especially those going abroad or returning from foreign countries, to be aware of fraudsters offering to exchange dollar bills at a rate cheaper than the market price. According to statistics with the Metropolitan Police Office, at least such 1 Read More...

Tourism activities resume in Pokhara

POKHARA, SEPTEMBER 27 Tourism industry has shown signs of revival after six months of the COVID-19 induced lockdown was relaxed in Pokhara. Mardi Himal Trek has witnessed mobility of tourists. Number of domestic tourists along the trekking route is on the rise, according to Raju Poudel, owner Read More...

NCB arrests three with 10 kg opium in Pokhara

KATHMANDU, SEPTEMBER 27 The Narcotics Control Bureau, Koteshwor, arrested three persons with 10 kilograms opium from Pokhara Metropolitan City, Kaski, yesterday. They have been identified as Gaja Pun, 50, and Chakkar Bahadur Pun, 40, of Eastern Rukum and Rabi Gurung, 24, of Gorkha. Superint Read More...