EU court backs Apple in case over $15 billion in back taxes

A European Union high court on Wednesday ruled in favor of techlogy giant Apple and Ireland in its dispute with EU over 13 billion euros ($15 billion) in back taxes. Luxembourg-based General Court said that multinational does t need to pay 13 billion euros that EU Commission called for. EU Commission had claimed that Apple had an illegal sweeart tax deal with Irish authorities. ruling from EU’s second-highest court on 2016 decision can only be appealed on points of law.

court said that ” Commission did t succeed in showing to requisite legal standard that re was an advant.”It said in a statement that “ Commission was wrong to declare” that Apple “had been granted a selective ecomic advant and, by extension, state aid.”

European Commission had ordered Apple to pay for gross underpayment of tax on profits across European bloc from 2003 to 2014. Commission concluded that Cuperti, California-based Apple used two shell companies incorporated in Ireland to permit Apple to report its Europe-wide profits at effective rates well under 1%.

Even though taxation remains under authority of its member countries, EU is seeking to create a level playing field among 27 nations by making sure special deals including ultra-low tax rates with multinationals, like one between Ireland and Apple, are weeded out. Trump administration has said that EU is unduly targeting U.S. companies.

ruling comes at a time when tax income for EU nations is especially welcome because of ecomic impact of coronavirus pandemic. At a time when cash-strapped households are suffering, EU wants to make sure multinationals making profits on continent pay ir fair share, too.

Meanwhile, EU Commission was to unveil new plans to combat tax fraud only hours after ruling in Luxembourg.“In times like se when we are passing multibillion-euro ecomic stimulus packs, we cant afford to waste a single cent in tax revenue“, said EU legislator Markus Ferber of Christian Democrat EPP Group.

(Im Credit: AP)