Apple Has Won A 13 Billion Euro Tax Case In The EU
American Apple Inc. won the first stage of the tax battle with the European Union for 13 billion euros: the company achieved in court the cancellation of the EU decision on a huge surcharge to the budget of Ireland.
The European court of justice on Wednesday overturned the European Commission's decision, made in August 2016, to recover from Apple 13 billion euros of unjustified tax benefits in favor of Ireland for the period from 2003 to 2014, the court said. It says the EC failed to prove that the company was given an "economic advantage."
The European court of justice has put a serious barrier in the way of the EU's "crusade" against such American giants as Google, Facebook, and Amazon.com those, who earn worldwide, but pay taxes either in the US or in preferential jurisdictions, writes the BBC. He also showed how difficult it would be to align tax conditions within the single market of the 27 EU countries, which the EU authorities have been trying to achieve for almost a decade.
EU countries lose more than 250 billion euros a year due to clever tax schemes-legal and not quite. Meanwhile, money is needed now more than ever - Europe is plunging into the biggest crisis of the century due to the COVID-19 coronavirus pandemic. The European Commission plans to allocate an unprecedented 750 billion euros to stimulate the economy, and therefore the question of raising taxes or at least improving their collection is very acute.
The case against Apple has been going on for years. Most likely, the current decision will be challenged and will reach the highest court in the EU, and this process will take several more years, the article notes.
Apple's stock price is up 1.9% in preliminary trading on Wednesday. Over the past year, the company's capitalization has increased by more than 90%, including this year - by a third.