From Enka OUNDER in Brussels Apple and Ireland defeated the European Commission. The European Court of Justice overturned the Brussels decision, forcing Tim Cook’s company to return $ 13 billion in taxes to the Dublin tax treasury under an agreement signed with the Irish government in 2016.
In 2016, the antitrust, led by Margaret Wester, considered the agreement an illegal state aid, which was returned. The decision was immediately appealed by Ireland and Apple, and the verdict came today: In the opinion of the European Court of Justice, the Commission has not been able to adequately demonstrate the legitimacy of the existence of a precedent.
Brussels launched the investigation in 2013 and focused on the tax treatment Apple received from 1991 to 2015, although the commission’s ability has only been considered over the past decade, since 2003. The tax rate in Ireland is 12.5%, but according to the survey, companies affiliated with Apple – thanks to a sophisticated system approved by the Dublin government – would have offered an effective rate of 1% in 2003, which was later reduced to 0.5%. % In 2001 and 0.005% in 2014.
This is because Apple created two companies, Apple Sales International and Apple Operations Europe, which hold the rights to use Apple’s property rights for the sale and manufacture of Apple products outside the American continent. All sales made in Europe are recorded in Ireland, but only a fraction of that profit is taxed on the island.
The European Court of Justice “denies the inconsistency of the disputed tax treaties”, but believes the Commission’s allegations are not sufficient to substantiate the existence of a selective gain given to Apple in Dublin.
“We welcome the court’s decision to overturn the commission’s decision – the Irish Ministry of Finance commented -” We have always made it clear to both Apple companies that no special treatment has taken place.
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