Apple wins €13 bn tax battle against EU
BRUSSELS: A European court on Wednesday annulled an EU order that Apple repay Ireland €13 billion in back taxes, in a major legal setback for Brussels.
The commission’s historic ruling against Apple was delivered in August 2016 by Competition Commissioner Margrethe Vestager in a shock decision that put Europe on the map as a scourge of Silicon Valley.
The iphone-maker and Ireland had appealed the order, which Apple CEO Tim Cook slammed at the time as “total political crap”.
Vestager was derided as Europe’s “tax lady” by US President Donald Trump because of the case, as well as a series of antitrust fines she imposed on Google.
The clear cut decision by the EU’S general court could now face another appeal at the top European Court of Justice, with a decision expected no earlier than 2021, but Vestager initially said only that Brussels was studying the judgement.
The EU in 2016 accused Ireland of allowing Apple to park revenue earned in Europe, Africa, the Middle East and India and sparing it almost any taxation.
Brussels said this gave Apple an advantage over other companies, allowing it to avoid Irish taxes between 2003 and 2014 of around €13 billion.
EU officials argued that constituted illegal “state aid” by Ireland.
But the EU court said the commission “did not succeed in showing the requisite legal standard that there was an advantage”.
The commission “was wrong” to declare that Apple units based in Ireland “had been granted a selective economic advantage and, by extension, state aid.”
Apple welcomed the decision and reiterated that the profits in question were always intended to go to the United States and not Ireland.