LUXEMBOURG (Reuters) – Apple’s (AAPL.(O) to the start of a legal challenge on Tuesday to the European Commission, in order to pay the € 13 billion ($14.4 billion) in the Irish back-tax, in a landmark case in the EU response to tax evasion by multinational companies.
FILE PHOTO: The Apple logo is displayed, press to an event at its headquarters in Cupertino, California September 10, 2019. REUTERS/Stephen Lam
The iPhone maker is expected to send a six-man delegation, under the leadership of the company’s Chief Financial Officer, Luca Maestri, for the two-day hearing at the Luxembourg-based general Court of the european union, for example, the second-highest court.
In August 2016, the Commission said the tax rulings by Ireland in 1991 and 2007, the man lowered the Apple, and the rate of taxation for more than two decades, effectively making it illegal under state aid rules.
The european Commissioner for Competition, Margrethe Vestager pointed to a 0.005% tax rate is paid by, Apple’s main Irish unit in 2014, as an example, the unusually low volume of payments made by the company.
Apple is expected to argue that there is nothing wrong with it if it had been followed in the Irish and US tax laws. It has made similar arguments in a future blog we will have a EU tax ruling a few years ago.
It will tell you that it is the court that is the biggest part of the taxes payable to the United States, and the majority of the value of its products, including the design, engineering, and development, is to be there.
Ireland, who has accused the Commission of exceeding its powers and to interfere with the operation of the EU member states have national sovereignty over tax matters, it is also a challenge to the EU ruling.
The Irish tax system has been a major attraction for the multinational companies, which employ roughly 10% of the working age population.
In luxembourg, it is back to Ireland, and the republic of Poland is the support of the european Commission. Vestager also has gone after the love offerings from the Netherlands and Starbucks (SBUX.(O) in Luxembourg, Amazon (AMZN.D), Fiat (FCHA.MI), and Engie (ENGIE.PA), as well as the British system of taxation for multi-national corporations.
The EU’s executive, of the tax crackdown was hit by a setback in February of this year, at the General Court in its ruling against a tax break, which benefited from BP’s (BP.(L) by BASF BASFn.DE and more than 30 other multinational companies, saying that it is not a scheme.
However, the Commission has decided that this is the case on Monday. [B5N25N00B]
The common Apple, the cases are of T-778/16 Ireland v Commission and T-892/16, Apple Sales International and of Apple Operations Europe / european Commission.
Reporting by Foo Yun Chee; editing by Philip Blenkinsop and Emelia Sithole-Matarise