Published: Fri, September 20, 2019
Markets | By Otis Pena

EU Tax Bill 'Defies Reality and Common Sense,' Says Apple

EU Tax Bill 'Defies Reality and Common Sense,' Says Apple

Ireland, which has an economy that has benefited from investment by multinational companies attracted by low tax rates, is also challenging the Commission's decision.

The EU General Court (EGC) will begin hearing the appeals lodged by Ireland and Apple against the EU tax ruling.

It found the Irish state had given undue tax benefits worth €13 billion to Apple through two tax rulings in 1991 and 2007.

Ask Apple or the Irish Government and they will say that this is a case of sovereignty and worldwide tax law, including the right of individual states to run their own tax affairs and the principle of taxation accruing where a product is "created".

"The Commission's decision is fundamentally flawed", its lawyer Paul Gallagher told the court.

It will be up to the court to decide whether the Commission was right to place the record tax bill on the tech giant.

Ireland, which is similarly appealing the decision, lashed out at the EU's "astonishing" interpretation of tax law. She's also been tasked with coming up with a "fair European tax" by the end of 2020 if global efforts to reform digital taxation don't make progress.

Apple may be on the verge of a hefty payment for back taxes owed to the European Commission as the tech giant could face its day of reckoning this week.

Apple's haggling over tax comes after its market valuation hit $1.02 trillion last week on the back of a new aggressive pricing strategy that may stoke demand for some smartphones and watches.

General Mills voluntarily recalls flour over E. coli risk
General Mills is voluntarily pulling certain bags of flour from the shelves after finding a sample contained E. coli bacteria. Those with recalled products are encouraged to throw out the flour, and contact General Mills at 1-800-230-8103.

The court's ruling will likely come in the next few months, but the losing part is expected to appeal and a final judgement may not come for years. He has slammed her because the "tax lady" because of the the investigations and heavy fines imposed on United States groups corresponding to Google.

They said the regulator was just seeking "headlines by quoting tiny numbers".

On Tuesday, an extraordinary tug-of-war over billions of euros of alleged unpaid taxes will kick off in the European Court of Justice.

A fraction of Apple Sales International's profits were attributed to its Irish branch, while the remaining, vast majority of profits was attributed to its "head office" which had no employees, no premises and no real activities.

Apple now claims that the tax bill "defies reality and common sense", the company said in a court filing Tuesday morning.

Pending the conclusion of the case, Apple has blocked the funds in an escrow account: a total of 14.3 billion euros after interest.

Belgium also has an attractive tax regime for multinational corporations, with the European Union launching probes into 39 multinational companies doing business there.

The group, which has been present in Ireland since the 1980s, employs around 6,000 people in Cork, the country's second-largest city.

Like this: