Apple must fight $15.3B EU tax bill without US government help, court says
On Thursday, the European Union Court of Justice blocked U.S. efforts to side with Apple in the appeal of a $15.3 billion tax bill, which the European Commission first ordered Ireland to collect in August 2016.
Court of Justice of the European Union
The Court of Justice upheld a lower-court decision in December 2017, which said the U.S. had failed to show how it had a direct interest in the matter, Bloomberg reported. The latest ruling was announced via Twitter.
The U.S. government argued it does have a vested interest in Apple's EU tax struggles, as the company could potentially claim tax credits for paying money in Ireland. The Treasury has even claimed that the EU is making itself a "supra-national tax authority."
The EU however has said that Ireland extended preferential tax treatment to Apple for years, even reverse-engineering rules on the fly to make the company happy. Under the Union's laws, benefits offered to one company must be available to others -- otherwise, it can constitute illegal state aid.
Apple has funneled large sums of international revenue through Ireland, using loopholes to pay minimal taxes. According to the Commission, Apple paid 1 percent on profits in 2003, and as little as 0.005 percent in 2014.
In testimony and elsewhere Apple and Ireland have denied any wrongdoing, claiming they followed all applicable laws. Nevertheless the latter has begun closing some loopholes, and the Commission has proposed new tax rules that would spread Apple's payments around the EU.
Some critics have accused Apple of violating the spirit of the law, and/or depriving social services of badly-needed revenue.
Regardless, Apple's first payments into an escrow fund should start this month. A ruling on the appeal could happen as soon as this fall.
Court of Justice of the European Union
The Court of Justice upheld a lower-court decision in December 2017, which said the U.S. had failed to show how it had a direct interest in the matter, Bloomberg reported. The latest ruling was announced via Twitter.
The U.S. government argued it does have a vested interest in Apple's EU tax struggles, as the company could potentially claim tax credits for paying money in Ireland. The Treasury has even claimed that the EU is making itself a "supra-national tax authority."
The EU however has said that Ireland extended preferential tax treatment to Apple for years, even reverse-engineering rules on the fly to make the company happy. Under the Union's laws, benefits offered to one company must be available to others -- otherwise, it can constitute illegal state aid.
Apple has funneled large sums of international revenue through Ireland, using loopholes to pay minimal taxes. According to the Commission, Apple paid 1 percent on profits in 2003, and as little as 0.005 percent in 2014.
In testimony and elsewhere Apple and Ireland have denied any wrongdoing, claiming they followed all applicable laws. Nevertheless the latter has begun closing some loopholes, and the Commission has proposed new tax rules that would spread Apple's payments around the EU.
Some critics have accused Apple of violating the spirit of the law, and/or depriving social services of badly-needed revenue.
Regardless, Apple's first payments into an escrow fund should start this month. A ruling on the appeal could happen as soon as this fall.
Comments
when war comes to your door, America should be charging them for any help and protection...i will call it “protection revenue enhancement” not taxes
2015 contribution amounts: https://www.wto.org/english/thewto_e/secre_e/contrib_e.htm
Fuck you. And don’t ask for our money from our taxpayers, in case if war come to your door.
Sincerely,
The Citizens of the United States of America
Russia has always been in an arms-race with the US and will continue to be until both countries see sense (or one runs out of money). China on the other hand does not have the same goals that the US (and previously Great Britain) has - China historically built a wall to keep the mongolians OUT, they didn't invade and conquer them, it's a totally different view on life.
Why did China just complete sea trials with their first domestically produced aircraft carrier then? That is a power projection platform, not a defensive one.
Re: the EU excluding the US government from arguing within their court system, that is their right (if they think it's consistent with the law over there) but realistically they can't prevent the US taking punitive measures elsewhere (such as next time a trade deal comes up). It seems short sighted of them to go after one big cash grab at the cost of annoying the US in the long run. The US has a long memory.
if US want to be the boss of the world and the world police, maybe US should willing to pay without being a pussy complaining.
This is far less egregious than Apple bending over backwards to keep Chinese authorities happy.