Ireland to appeal against the EC’s Apple ruling
In September, the European Commission ruled that Ireland had granted an undue tax advantage of EUR 13 billion to Apple, which it now has to recover from the company. In early October, the Irish finance minister prepared an appeal against the EC’s decision.
The appeal is based on the following key arguments:
- The preferential tax regimes that Ireland was supposed to have granted to Apple do not exist.
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The damage arising from the case may threaten the credibility of Ireland in the international tax debate.
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The European Commission in its ruling has undermined the existing principle of international taxation that states that profits should be taxed where generated.
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The companies involved are not Irish tax residents.
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The US Department of the Treasury has expressed concern that the ruling will lead to Apple paying less tax in the US.
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The European Commission’s allowing other jurisdictions to tax the amounts that Ireland is required to recover from Apple is highly controversial.
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By its ruling, the European Commission intrudes upon the sovereignty of member states in tax matters, causing uncertainty for businesses as such.
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Ireland does not have any legal title to recover the EUR 13 billion that, according to the European Commission, Apple should have paid in tax.