Apple takes on the European Commission over €13bn tax charge

Apple takes on the European Commission over €13bn tax charge

Apple takes on the European Commission over €13bn tax chargeApple has lodged a total of 14 'pleas' against the European Commission this week, in retaliation to accusations that it used an illegal tax deal in Ireland.
The findings of the Commission, which Apple claims are based on "fundamental errors ", argue that the tech giant's tax regime in Ireland was a form of "illegal state aid ", amounting to €13 billion in back taxes.


This is the largest sum in history that the Commission has ever charged a company - the last record being set by EDF Energy in 2015 when it was charged €1. 4 billion. Over the course of 11 years, Apple profited from a favourable tax regime that the European Commission claims is fundaApple is refuting the claims, accusing the Commission of "[violating] the principles of legal certainty and non-retroactivity by ordering recovery of the alleged aid", and alleging that the Commission failed to "conduct a diligent and impartial investigation". 



Apple claims that, by refusing to reveal how it reached its ruling, the Commission violated the company's "fundamental rights" to good 
administration. The legal action was first submitted on December 19, 2016, and has now progressed to the European Court of Justice. mentally illegal.



The nature of the case has been described in terms of a David-and-Goliath duel, with one German Green MEP Sven Giegold telling the FT: “Even Apple does not stand above the law.
The so-called 'Irish inversion ' tax loop has made the country a prime location for foreign companies to utilise lower tax rates by setting up a base on Irish soil.


The corporate tax rate in Ireland is set at 12. 5 per cent , however, Apple's selective treatment allowed the tech company - ranked 8th in Forbes Global 2000 list - to pay a significantly reduced sum.



Margrethe Vestager, the EU's competition commissioner, claimed that "selective treatment allowed Apple to pay an effective corporate tax rate of 1% on its European profits in 2003 down to 0. 005 per cent in 2014. more click here