Following defeat, European Commission doubles down on Apple tax critiques

Posted:
in General Discussion
Following a defeat in court, the European Commission continues to declare that it remains unfair that Apple is paying so little in taxes.

Credit: European Commission
Credit: European Commission


On Wednesday, the General Court of the European Union ruled that the Irish government didn't unlawfully aid Apple in reducing its tax bill. That decision ultimately annulled $14.4 billion in back taxes that the EU demanded Apple pay.

Following the defeat, European Commission executive vice president Valdis Dombrovskis said that the executive doesn't "consider it normal that the largest corporates get away with paying one percent tax at most."

The EU's commissioner for economy, Paolo Gentiloni, made similar comments, the EU Observer reported. "A single ruling is not discouraging our commitment in this sense," Gentiloni said following the decision Wednesday. "I would say the contrary."

The European Commission originally determined in 2016 that two tax rulings issued by Ireland to Apple constituted illegal aid by the state. But the court on Wednesday said that the Commission had failed to provide enough evidence to substantiate those claims.

In the wake of the ruling, the Irish government praised the court's decision, saying that the "correct amount of Irish tax was charged" in line with the country's normal taxation.

Just a few hours after the General Court ruling, the EU unveiled sweeping tax plans aimed at more transparent, simpler and fairer taxes. The plan included provisions that put increased pressure on digital platforms, like Apple's App Store.

It also included articles that could sidestep the power of veto by member states. That's part of a broader push to curb "corporate tax regimes of member states," including countries known for allowing and fostering tax evasion or avoidance.

The newly announced plan follows years of critiques of Europe's tax system, including by European Network on Debt and Development tax expert Tove Maria Ryding.

"If we had a proper corporate tax system, we wouldn't need long court cases to find out whether it is legal for multinational corporations to pay less than one percent in taxes," Ryding said.
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Comments

  • Reply 1 of 48
    tylersdadtylersdad Posts: 259member
    Apple doesn't make tax law, they just follow it. If the EC doesn't like their current tax laws, maybe they should fix them?
    baconstangbshankheadfull0winejdb8167JWSCelijahganantksundaramcastcoreaderuttermwhite
  • Reply 2 of 48
    kschererkscherer Posts: 79member
    tylersdad said:
    Apple doesn't make tax law, they just follow it. If the EC doesn't like their current tax laws, maybe they should fix them?
    They did "fix them", which is what this has been all about. The EU passed new tax laws, and then tried to back-date the new laws and charge Apple for taxes from income generated prior to the "fix".

    It would be the same as if the U.S. government passed a new tax law in 2020 that raised your income tax, and then tried to collect on income from 1990 forward. It's that kind of stupid.
    bshankcat52SpamSandwichtylersdadEsquireCatsjdb8167anantksundaramaderutterjony0Rayz2016
  • Reply 3 of 48
    tylersdadtylersdad Posts: 259member
    kscherer said:
    tylersdad said:
    Apple doesn't make tax law, they just follow it. If the EC doesn't like their current tax laws, maybe they should fix them?
    They did "fix them", which is what this has been all about. The EU passed new tax laws, and then tried to back-date the new laws and charge Apple for taxes from income generated prior to the "fix".

    It would be the same as if the U.S. government passed a new tax law in 2020 that raised your income tax, and then tried to collect on income from 1990 forward. It's that kind of stupid.
    Gotcha. 
    watto_cobra
  • Reply 4 of 48
    bulk001bulk001 Posts: 639member
    It is unfair but 1. Apple is simply playing by the rules they set 2. Instead of trying to raise Apple’s taxes they should find ways to lower everyone else’s. No matter how much they collect politicians will always find ways to spend even more! #taborcolorado
    JWSCcat52uraharawatto_cobra
  • Reply 5 of 48
    lkrupplkrupp Posts: 9,287member
    bulk001 said:
    It is unfair but 1. Apple is simply playing by the rules they set 2. Instead of trying to raise Apple’s taxes they should find ways to lower everyone else’s. No matter how much they collect politicians will always find ways to spend even more! #taborcolorado
    Sorry, socialists don’t think like that and there’s no discussing with them. 
    JWSCcat52marklarkjbdragon
  • Reply 6 of 48
    georgie01georgie01 Posts: 380member
    This...

    ”It also included articles that could sidestep the power of veto by member states.”

    ...should be a wake up call (one of many) to anyone who doesn’t see the European Union trying very hard to turn Europe into a singular centralised governing agency for that entire geographic region. It was so important for the region that the UK get out—not just for the UK, but so that all of the other countries can see it’s possible to leave once they realise what an oppressive disaster unifying Europe under one government will become.
    JWSCifullgazelijahgcat52aderuttermarklarkwatto_cobra
  • Reply 7 of 48
    JWSCJWSC Posts: 935member
    georgie01 said:
    This...

    ”It also included articles that could sidestep the power of veto by member states.”

    ...should be a wake up call (one of many) to anyone who doesn’t see the European Union trying very hard to turn Europe into a singular centralised governing agency for that entire geographic region. It was so important for the region that the UK get out—not just for the UK, but so that all of the other countries can see it’s possible to leave once they realise what an oppressive disaster unifying Europe under one government will become.
    Agreed. During the tumult of the Brexit fight I was of the opinion that the U.K. would be better off remaining in the E.U. But behavior like this only reinforces that the decision to leave was the right one. So I’ve come around 180 degrees on Brexit. Time to get out.
    ifullgazentropyselijahgcat52marklarkuraharaseanjh2pwatto_cobra
  • Reply 8 of 48
    entropysentropys Posts: 3,006member
    All your money belong to us.

    tax eaters never get enough.
    cat52anantksundarammarklarklkruppjbdragonwatto_cobra
  • Reply 9 of 48
    JWSCJWSC Posts: 935member
    "If we had a proper corporate tax system, we wouldn't need long court cases to find out whether it is legal for multinational corporations to pay less than one percent in taxes," Ryding said.
    This statement only serves to highlight their absolute cluelessness. They assume that one, and only one, tax system is best for all. If this line of thought and behavior prevails in the European Commission, the E.U. may eventually be torn apart by mistrust and anti-democratic tendencies.
    elijahganantksundaramcat52castcoremarklarkjbdragonwatto_cobra
  • Reply 10 of 48
    elijahgelijahg Posts: 2,206member
    It also included articles that could sidestep the power of veto by member states. That's part of a broader push to curb "corporate tax regimes of member states," including countries known for allowing and fostering tax evasion or avoidance.
    The gradual erosion of the rights of member states continues as they slowly march forward with the EU's ultimate goal of a United States of Europe.
    cat52JWSCmarklarkjbdragonseanj
  • Reply 11 of 48
    elijahgelijahg Posts: 2,206member

    georgie01 said:
    This...

    ”It also included articles that could sidestep the power of veto by member states.”

    ...should be a wake up call (one of many) to anyone who doesn’t see the European Union trying very hard to turn Europe into a singular centralised governing agency for that entire geographic region. It was so important for the region that the UK get out—not just for the UK, but so that all of the other countries can see it’s possible to leave once they realise what an oppressive disaster unifying Europe under one government will become.
    This also shows they've learnt absolutely nothing from the UK leaving, and continue with ideals still entirely removed from those of EU citizens.
    aderutteranantksundaramcat52JWSCmarklarkentropysurahara
  • Reply 12 of 48
    anantksundaramanantksundaram Posts: 20,185member
    What's that word for doing the same thing over and over again hoping the outcome will be different the next time... wait, I know... 
    cat52JWSCmarklarkjbdragonwatto_cobra
  • Reply 13 of 48
    castcorecastcore Posts: 141member
    kscherer said:
    tylersdad said:
    Apple doesn't make tax law, they just follow it. If the EC doesn't like their current tax laws, maybe they should fix them?
    They did "fix them", which is what this has been all about. The EU passed new tax laws, and then tried to back-date the new laws and charge Apple for taxes from income generated prior to the "fix".

    It would be the same as if the U.S. government passed a new tax law in 2020 that raised your income tax, and then tried to collect on income from 1990 forward. It's that kind of stupid.
    Exactly, these Europeans running EU are communist idiots , maybe that is why our Democrats get along so well with them while Trump cannot stand them..
    mwhitecat52SpamSandwichmarklarkred oakjbdragonh2p
  • Reply 14 of 48
    castcorecastcore Posts: 141member
    JWSC said:
    "If we had a proper corporate tax system, we wouldn't need long court cases to find out whether it is legal for multinational corporations to pay less than one percent in taxes," Ryding said.
    This statement only serves to highlight their absolute cluelessness. They assume that one, and only one, tax system is best for all. If this line of thought and behavior prevails in the European Commission, the E.U. may eventually be torn apart by mistrust and anti-democratic tendencies.
    Lol our way or the highway, your must submit to our law passed retroactively 10 years later! Or you must submit to the way we think about Sports team names, about Statues or we mob you and shame you, sounds familiar?
    cat52JWSCmarklarkh2pwatto_cobra
  • Reply 15 of 48
    anantksundaramanantksundaram Posts: 20,185member
    castcore said:
    JWSC said:
    "If we had a proper corporate tax system, we wouldn't need long court cases to find out whether it is legal for multinational corporations to pay less than one percent in taxes," Ryding said.
    This statement only serves to highlight their absolute cluelessness. They assume that one, and only one, tax system is best for all. If this line of thought and behavior prevails in the European Commission, the E.U. may eventually be torn apart by mistrust and anti-democratic tendencies.
    Lol our way or the highway, your must submit to our law passed retroactively 10 years later! Or you must submit to the way we think about Sports team names, about Statues or we mob you and shame you, sounds familiar?
    Quit the politics please, and focus on the topic.
    ronnDancingMonkeysurahara
  • Reply 16 of 48
    BeatsBeats Posts: 2,426member
    At this point Apple should buy an island and store their money there. I'm thinking this is illegal right?
    MisterKitmarklark
  • Reply 17 of 48
    aderutteraderutter Posts: 461member
    Beats said:
    At this point Apple should buy an island and store their money there. I'm thinking this is illegal right?
    Nauru? I.e. their own country.
    marklark
  • Reply 18 of 48
    BeatsBeats Posts: 2,426member
    aderutter said:
    Beats said:
    At this point Apple should buy an island and store their money there. I'm thinking this is illegal right?
    Nauru? I.e. their own country.

    Basically. I bet other countries will then alter laws to charge Apple for that.
    marklarkcat52
  • Reply 19 of 48
    JWSCJWSC Posts: 935member
    Beats said:
    At this point Apple should buy an island and store their money there. I'm thinking this is illegal right?
    With the amount of money Apple has, anything is possible.
  • Reply 20 of 48
    Rayz2016Rayz2016 Posts: 6,823member
    Wait a minute.

    It also included articles that could sidestep the power of veto by member states. 

    So who decides that the EU could sidestep the wishes of its members? 

    So who is running the EU?

    Are these plans just being pushed through, or are member states voting on it? 

    It seems to me that close to half the EU members don't want this:

    https://www.theguardian.com/business/2019/nov/28/12-eu-states-reject-move-to-expose-companies-tax-avoidance

    So if they introduce this veto sidestep, then that'll be 12 unhappy members. 
    edited July 2020 cat52
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