Following defeat, European Commission doubles down on Apple tax critiques
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
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.
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.
Comments
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.
”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.
tax eaters never get enough.
This also shows they've learnt absolutely nothing from the UK leaving, and continue with ideals still entirely removed from those of EU citizens.
Basically. I bet other countries will then alter laws to charge Apple for that.
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.