Locate European Union Reasons for his appeal against victory a company Apple in a tax dispute of 13 billion euros ($ 15.8 billion), saying the judges used contradictory logic when deciding that Apple’s business in Ireland was not responsible for large payments.
The original case related to how Ireland allowed Apple to make an unfair tax arrangement, and the European Commission later ordered the company to pay $ 14.4 billion in back taxes.
Apple paid this amount into an escrow account while the appeals continued, and in July 2020, the General Court of the European Union sided with Apple over the tax arrangements that Ireland entered into with it.
The Luxembourg General Court ruled that the European Union’s executive arm, led by Antitrust Chief Margrethe Vestager, had failed to demonstrate the required legal standard that Apple took advantage of.
at Abstract His appeal, published earlier today, has set the European Union out of its intention to challenge the court’s ruling issued last year.
The appeal alleges that the court failed to properly balance the EU’s analysis of Irish subsidiaries of Apple and showed contradictory logic in their findings.
It also wrongly assessed the value of intellectual property issues, and incorrectly confused the number of Apple employees in two of its Irish units, along with the company’s level of responsibility for intellectual property regarding iPhone and iPad sales across Europe.
The argument is mainly about where the value is created and, therefore, where it should be taxed. Apple argues that all important company decisions are made at its Cupertino headquarters, so profits should be taxed in the United States.
The July decision came as a surprise to EU commissioners, who in recent years have set out to investigate national tax provisions that effectively act as illegal subsidies and close tax loopholes that allow some multinational companies to legally pay lower taxes in Europe.
The final decision is now supposed to be taken by the European Union’s Supreme Court, the CJEU.
Although the loss of appeal may be seen as a major setback for the European Commission, it will not prevent it from pursuing other lines of investigation into tax arrangements for multinationals, such as Apple.
However, the commission must be able to demonstrate that the tax provisions confer a financial advantage to the company in question and thus constitute illegal government aid.