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Photo by Edmond Terakopiano (PA Wire / PA Images)
The General Court of the European Union reversed on Wednesday an EU decision requiring Apple to pay Ireland $ 13 billion. The euro does not pay taxes, so it gives Brussels a strong legal mandate.
Complemented by the comment of the lawyer Mantas Juozaiis
The iPhone maker and Ireland reached the 2016 decision in the morning, where Apple CEO Tim Cook called it political nonsense.
In the request, the EU General Court reversed the European Commission’s decision to pay a tax in Ireland in favor of Apple.
An unequivocal decision of the EU General Court can be appealed to the highest court in the EU no earlier than 2021.
The European Commission issued a futile landmark decision in August 2016. The decision will be made by Margrethe Vestager, EC Competition Commissioner.
It was a surprising decision for many, as it showed that Europe does not intend to give in to Silicon Valley militias.
United States President Donald Trump named the commissioner a tax woman on the Apple case, as well as the heavy antitrust fines imposed on Google by Vestager.
The EU has accused Ireland of allowing Apple to declare income in Europe, Africa, the Middle East and India, thereby avoiding near-tax evasion.
According to Brussels, this gave Apple an advantage over other companies by allowing it to evade the Irish tax, which amounts to almost 13 billion euros. EUR.
EU officials claimed that this was illegal state aid in Ireland.
However, the EU court ruled that the commission had failed to demonstrate the required legal standard that an advantage had indeed been granted, as required by EU law.
According to him, the EC erroneously stated that Apple’s divisions in Ireland had been granted a selective economic advantage and, inter alia, state aid.
Apple welcomed the decision and reiterated that the earnings in question were always intended to be declared in the United States and not in Ireland.
The case was not about how much we paid, but where we have to pay them, according to news agents in an AFP statement, an Apple spokesman said.
We are proud to be the world’s greatest teacher because we know the important role that tuition plays in society, Apple added.
On Wednesday, Ireland welcomed the annulment by the Court of Justice of the European Communities of a decision that Ireland had granted state aid to a US technology company.
According to the state government, it was always known that Apple was not subject to a special regime.
The Government added: The correct Irish tax rate had been applied (…), following poor Irish tax rules.
Lawyers say the case is very important not only for Ireland, but also for all EU member states, because the EC’s attempt to limit the state’s ability to decide independently on tax matters was seen as an attempt to limit the sovereignty of the state.
Therefore, the decision is welcomed not only by trained professionals, but also by all those seeking to retain greater powers in the Member States. Another important aspect is that the Commission seeks to do this through competition law (state aid rules). This decision shows that the Court will not be willing to allow such a course of action, says Mantas Juozaitis, a member of the Motieka and Audzeviius law firm.
Furthermore, the decision will affect EU-EE relations. The US has seen the case as an attack on the country’s technology sector.
However, it should not be forgotten that the decision is not yet final. Given the multifaceted and important nature of the case, it would be strange if the Commission did not refer the decision to the EU Court of Justice, adds the applicant.
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