Apple files appeal against the EC’s $14 bn tax bill and accuses the commission of lack of diligence
Apple, which was recently slapped with a $14 bn tax bill for its activities in Ireland has now filed a 14-point appeal against the ruling. The EC had filed a case accusing Ireland of giving “state aid” to Apple.
The European Commission (EC) charged Apple on various grounds, including tax evasion, and won a ruling in the EC’s favour. As Apple Insider reports, Apple has submitted its appeal of the ruling and primarily contests that “the Cork, Ireland, headquarters of Apple’s European wing was properly set up, in accordance with all regulations and laws.”
The appeal also points out various procedural shortcomings, improper attribution of income to Apple, the treatment of its status as a non-resident Irish company and more. The iPhone giant also alleges that the EC failed to conduct a “diligent and impartial investigation” and accused the EC of breaching articles of the Charter of Fundamental Rights of the European Union.
The company has demanded that the ruling be dropped and that the EC pay the legal fees that Apple has racked up so far.
The 14-point appeal can be found here.
Many US companies operate out of Ireland because of the alleged tax benefits the country provides. The EC and US Government has been going after these companies, including Apple, Google and Microsoft, and accusing them of tax evasion.
While the matter is far more complicated than it would appear.
For example, the current so-called state-aid given allegedly by Ireland applies to money that Apple is holding in Ireland. While Apple is holding a lot of money in Ireland, a massive chunk of it is to be repatriated to the US and then subjected to US tax laws. Irish law allows for this. Ireland will only tax Apple on income generated from activities within Ireland, not on money held in Ireland.
The US is also furious at the EC’s actions since it believes that the EC is trying to fleece the US Government out of taxes owed to the US Government since the money is meant to be repatriated to it. And this is only one of many other such issues.
Whether Apple and other such companies are evading tax by doing this is a matter of debate. Measures are already being taken in European countries and the US to prevent this sort of “tax evasion” from happening in the future. The form of tax evasion being targeted by these new laws is called a ‘Double Irish’, or, in its expanded from, a ‘Double Irish with a Dutch Sandwich.’
Companies that use this structure have until 2020 to abolish it or face severe penalties.
