Apple will get away with the brutal European tax for now

The European Commission is investigating the matter further, as several MEPs say it is outrageous for the company to withdraw from European taxation. In any case, the gigantic amount already paid by the company will remain in deposit for the time being.

The tax situation of American companies has been a boggy field in the European Union so far, in connection with which the experts of the two sides have tried to develop a uniform regulation, which attempts have failed so far. Nevertheless, the companies concerned do not suspend their activities during this time, so conflicts are ongoing, largely due to the lack of the above-mentioned rules. Some members of the European Commission have filed a lawsuit against Apple for allegedly evading taxation, but the courts have now ruled the company with the apple logo innocent.

EC members, led by Margrethe Vestager, accused Apple of operating a paper-only office in the country with the approval of the Irish government, and all of their revenue went here, exempting them from serious EU taxes. Regarding Ireland, it is worth noting that the whole of the EU has the lowest corporate tax burden here, which is why the company (and of course several other global companies) has put its headquarters for Europe, the Middle East and Africa here. The indictment stated that Apple had even received a tax credit from the Irish state for the aforementioned tax, so EC representatives wanted to pay € 13 billion in tax arrears.

A first-instance decision, by the way, awarded Ireland the amount that Apple nicely outperformed, but at the same time they challenged the verdict. The courts found that the plaintiffs had not been able to adduce sufficient evidence that illegal tax evasion had taken place, so in the second instance they had given the truth to Apple and Ireland; the European Commission has 14 days to appeal to the EU Supreme Court.

The country’s government has responded to this by saying that they don’t need the money because this loss of revenue has made them well worth it in exchange for Apple and similar multinationals finding the country attractive. The situation in Faramuci is that if Ireland loses in the lawsuit, it will have to accept an amazing amount from Apple as a “punishment” – but this has not happened yet.

Margrethe Vestager said she would continue to investigate the matter and prepare for possible next steps, and would definitely initiate further negotiations – which is why the huge amount paid by Apple for the time being will remain in the deposit until the final decision. Incidentally, the MP has recently declared war on several multinational companies, including Starbucks, Nike and IKEA, all accusing them of tax arrears, saying the companies are trying to evade their obligations by cleverly, in violation of free market competition.

Leave a Reply

Your email address will not be published.