- Title: EU court scraps EU order to Apple to pay $15 bln in Irish taxes
- Date: 15th July 2020
- Summary: SHANGHAI, CHINA (FILE - OCTOBER 26, 2018) (REUTERS) EXTERIOR OF APPLE STORE APPLE LOGO ON APPLE STORE
- Embargoed: 29th July 2020 12:22
- Keywords: Apple European Union General Court Ireland Margrethe Vestager competition ruling state aid taxes
- Location: LUXEMBOURG, LUXEMBOURG / SHANGHAI, CHINA / BRUSSELS, BELGIUM / CUPERTINO, CALIFORNIA AND NEW YORK, NEW YORK, UNITED STATES / INTERNET
- City: LUXEMBOURG, LUXEMBOURG / SHANGHAI, CHINA / BRUSSELS, BELGIUM / CUPERTINO, CALIFORNIA AND NEW YORK, NEW YORK, UNITED STATES / INTERNET
- Country: Luxembourg
- Topics: Budget/Taxation/Revenue,Government/Politics
- Reuters ID: LVA001CMX8LL3
- Aspect Ratio: 16:9
- Story Text: EDITORS PLEASE NOTE: EDIT 3107-EU-APPLE/TAX-FILE CONTAINS MORE FILE FOOTAGE OF APPLE
Apple scored a major win on Wednesday (July 15) as Europe's second-highest court rejected an EU order for the iPhone maker to pay 13 billion euros ($15 billion) in Irish back taxes, dealing a blow to the bloc's attempts to crack down on sweetheart tax deals.
In its order four years ago, the European Commission said Apple benefited from illegal state aid via two Irish tax rulings that artificially reduced its tax burden for over two decades - to as low as 0.005% in 2014.
Judges of the Court of Justice of the European Union's General Court said the EU executive was wrong to say Apple's two Irish subsidiaries - Apple Sales International (ASI) and Apple Operations Europe (AOE) - had been granted a selective economic advantage and, by extension, state aid.
Apple welcomed the ruling, saying the case was not about how much tax it pays but where it is required to pay it.
Ireland, which had appealed against the Commission's decision alongside Apple, said it had always been clear it had not given special treatment to the U.S. company.
The defeat for European Competition Commissioner Margrethe Vestager could weaken or delay pending cases against Ikea's and Nike's deals with the Netherlands, as well as Huhtamaki's agreement with Luxembourg.
Vestager said she would study the court's judgement and reflect on possible next steps. The Commission can appeal on points of law to the EU Court of Justice, Europe's top court.
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