Slashdot Mirror

← Back to Stories (view on slashdot.org)

Apple Appeals EU Tax Ruling, Says It Was a 'Convenient Target' (reuters.com)

Posted by msmash on from the Convenient-Target dept.

Apple has launched a legal challenge to a record $14 billion EU tax demand, arguing that EU regulators ignored tax experts and corporate law and deliberately picked a method to maximize the penalty, senior executives said. From a report on Reuters: Apple's combative stand underlines its anger with the European Commission, which said on Aug. 30 the company's Irish tax deal was illegal state aid and ordered it to repay up to 13 billion euros ($13.8 billion) to Ireland, where Apple has its European headquarters. European Competition Commissioner Margrethe Vestager, a former Danish economy minister, said Apple's Irish tax bill implied a tax rate of 0.005 percent in 2014. General Counsel Bruce Sewell and Chief Financial Officer Luca Maestri outlined in an interview with Reuters at Apple's global headquarters in Cupertino the company's plans for its appeal against the Commission's ruling at Europe's second highest court. The iPhone and iPad maker was singled out because of its success, Sewell said. "Apple is not an outlier in any sense that matters to the law. Apple is a convenient target because it generates lots of headlines. It allows the commissioner to become Dane of the year for 2016," he said, referring to the title accorded to Vestager by Danish newspaper Berlingske last month.

2 of 122 comments (clear)

  1. Re:Tax evasion by Anonymous Coward · · Score: 5, Informative

    While it might be unwanted on the moral/ethical compass, tax evasion is not illegal.

    It is illegal. That is what defines tax evasion. When legal means are used to avoid paying tax, it is called tax avoidance.

    Apple played by the rules, and the Irish government agreed on it

    That does not make it legal. By making this arrangement with Apple, the Irish government violated EU directives it had previously agreed upon.

    The EU desperately needs more cash, so they try all sorts of things, including these tricks

    Enforcing the law in this case will not result in a single cent going to the EU. They are forcing the government of Ireland to collect the taxes Ireland is owed. Moreover, I don't think the EU is desperately in need of cash. I don't know where you get that idea from. The EU budget has been more or less stable for a long time.

    This is a sign that the EU is cracking up.

    This is a sign that you don't know what you are talking about.

  2. Re:EU has no remit on taxation by jabuzz · · Score: 5, Informative

    WRONG, WRONG, and WRONG again.

    I will point you to the following article on the supremacy of EU law over national law.

    https://en.wikipedia.org/wiki/...

    I will then point you to the third amendment of the Irish constitution, which enshrined this primacy of EU law into the Irish constitution.

    https://en.wikipedia.org/wiki/...

    The EU has *VERY* strong rules on state aid. The Irish government gave Apple a special tax deal, that was not available to everyone. This has been found to break those state aid rules and is therefore illegal under EU law and as EU law has primacy over Irish law as confirmed by the third amendment to the Irish constitution then it is illegal.

    It is amazing the crap people spout about this sort of stuff without the first clue as to what they are talking about.