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Why the European Court of Justice is breaking the commission and saving Apple and Ireland

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Apple and Ireland have won a judicial battle with the European Union over a tax treaty. Commissioner Westerger lost $ 13 billion in tax crusade against Apple. All details

To the European Commission and the “winners” Apple Dublin.

Today The European Court of Justice, the second highest court in the European Union, overturned the European Commission’s decision on Apple’s financial decision and granted the technology giant the right to do so.

According to the judges, “Brussels has failed to prove that it has a competitive advantage over Apple from a legal standpoint.

The European Commission has hit back, claiming that Ireland paid 13 13 billion in illegal tax benefits to Apple.

What the EU Commission established in 2016

In 2016, competition commissioner Margaret Vestager ruled that Ireland should demand a തിരികെ 13 billion tax refund from Apple.

After a thorough investigation, the Brussels Commission ruled that Apple had benefited from illegal state aid through two Irish tax decrees that artificially reduced its tax burden for more than two decades – down from 0.005 percent in 2014.

The commission said Apple had returned all revenues from Europe, Africa, the Middle East and India to Ireland. Brussels had estimated that it would have to pay $ 13 billion in taxes.

The European Court of Justice ruled in favor of Apple and Ireland

But the European Union High Court denied the EU Commission offices. A Luxembourg court has ruled that multinationals should not pay the 13 13 billion demanded by the European Commission to Dublin.

In the opinion of the General Court of the European Union, the Commission is in fact erroneous in declaring that Apple Sales International and Apple Operations Europe have achieved selective financial gain and state assistance through expansion.

The sunset of the Westergear era?

Commissioner Westerger, whose term focused on the fight against tax evasion, had already been sued by the same court. Last year the General Court had In fact, his request to Starbucks was annulled To pay Dutch back tax of up to $ 30 million.

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Reuters He also recalled that the failure of the European Competition Commissioner could weaken or delay pending cases against the IKEA and Nike agreements with the Netherlands and the Huhtamaki agreement with Luxembourg.

As he pointed out Politico Finally, Westergeer is pressuring major EU member states France, Germany, Italy and Poland to change the block’s competition rules in support of the largest European companies.

Celebrate Iron

The Dublin government was relieved. It has always been clear that Ireland does not have a separate treatment for both Apple companies. The correct amount was levied in accordance with Irish tax laws, ”reads a note from the Irish Ministry of Finance.

“Ireland has appealed against the decision of the European Union Commission, and the Court’s decision today supports this view that Ireland did not provide state assistance.”

Dublin has appealed to Apple against the commission’s decision to protect the low tax system, which has so far attracted 250,000 multinational employees.

Satisfactory apple

“This case is not about how much tax we pay, but where we should pay it,” Apple said. “We are proud to be the largest taxpayer in the world because we know the important role that tax payments play in society.” .

Commission VS Apple does not end here

The European Commission now has two months and 10 days to appeal the decision. If there is an appeal – most likely – the European Court of Justice will decide, which will issue the final verdict in the case.

But Brussels’ stagnation with Apple should go beyond the final verdict on the tax dispute.

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Last month Wester actually launched two new antitrust inquiries into the App Store and the Cupertino giant’s Apple Pay, which will take years. Both appeal procedures and damages claims can be pursued.

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