Apple and Ireland win tax case appeal

Apple and the Republic of Ireland have won their appeal against the European Commission over a €13 billion (£11.6bn) tax bill.

The General Court in Luxembourg annulled the decision taken by the commission over Irish tax rulings in favour of the tech giant.

The EC previously said the tech giant paid an effective corporate tax rate of just 1 per cent on profits from sales made across the EU by routing them through a firm based in Ireland. The Commission said this constituted illegal aid given to Apple by the Irish state.

However, in its judgment the General Court stated that the Commission was “wrong” to declare that Apple Sales International (ASI) and Apple Operations Europe (AOE) had been granted a selective economic advantage and, by extension, state aid.

The court ruled that the Commission did not succeed in showing to the

“requisite legal standard” that there was an advantage.

The Commission can appeal against the General Court’s decision to the European Court of Justice.

Ireland’s open economy is based on low corporate taxation and other incentives to attract multinationals. In Apple’s case, it was significantly below the standard 12.5 per cent imposed on corporations.

Apple said that from 2003 to 2014, it paid $577m (€504.6m) in tax on profit generated in the country, in line with the tax laws in Ireland.