Nepal | August 05, 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:

Flood victims deprived of relief in Kailali

Dhangadi, August 3 Flood victims of Kailali’s southern region have complained that they have not received relief for the past six days. The victims who were displaced and are staying in the open now are making do with noodles, biscuits and water provided by local levels concerned and various Read More...

Status of Province 1 forests improving

The House panel listed positive effects of proper forest management Biratnagar, August 3 The implementation of scientific forest management programme has led to improvement in the status of forests in eastern Nepal. Increase in revenue collection, replacement of timber import, gradual increas Read More...

Citizenship mandatory for swab collection

Rajbiraj, August 3 After the trend of registering false details increased among the COVID-suspects at the time of swab collection, Saptari District Health Office has made it mandatory to produce citizenship certificate or any other ID card for swab collection. Around a dozen people, who had th Read More...

Food distributed to landslide victims

Jajarkot, August 3 Food stuffs were supplied to landslide hit areas in Jajarkot district. Food Management and Trade Company Ltd supplied food stuffs at Barekot Rural Municipality, where 14 people lost their lives and more than 1,200 people were displaced due to landslides on July 9. The com Read More...

NEA

82 per cent physical progress achieved in NEA projects amid COVID-19 pandemic

Power utility was able to fully electrify 11 districts in last fiscal Kathmandu, August 3 Nepal Electricity Authority (NEA) was able to achieve 82.29 per cent physical progress in its projects related to power generation, transmission and distribution in the last fiscal year 2019-20 and also a Read More...

Sushil Bhatta appointed IBN CEO

KATHMANDU: Sushil Bhatta, a member of the National Planning Commission, has been appointed as the chief executive officer of Investment Board Nepal (IBN). The Cabinet meeting on Monday decided to appoint Bhatta to IBN’s top post which was vacant since then CEO Maha Prasad Adhikari was appointed Read More...

1,170 Nepalis return from five destinations

Kathmandu, August 3 A total of 1,170 Nepalis returned home from five destinations today. According to Tribhuvan International Airport (TIA), five flights were conducted from the United Arab Emirates (UAE) and a flight each was conducted from Malaysia and Saudi Arabia today. Himalaya Airline Read More...

Pakistan must hit the ground running against England: Misbah

Pakistan will have to hit the ground running if they are to have any chance against England in their three-test series which starts on Wednesday, coach Misbah-ul-Haq said. Six months since their last test match, Pakistan go into the games at bio-secure venues in Manchester and Southampton aga Read More...