EU Tax Battle: The lower tribunal’s support for Apple in its challenge against the EU’s 13-billion-euro tax order is facing scrutiny. An adviser to the top European court highlighted legal errors on Thursday, suggesting a review of the case. This development poses a potential setback for Apple.
The tax case is part of EU antitrust chief Margrethe Vestager’s campaign against deals between multinationals and EU countries deemed as unfair state aid. In 2016, the European Commission asserted that Apple benefited from Irish tax rulings, artificially reducing its tax burden to as low as 0.005% in 2014 over more than two decades.
Also Read: European Bank Windfall Taxation: A Comprehensive Overview
In 2020, the General Court upheld Apple’s challenge, citing regulators’ failure to meet the legal standard for proving an unfair advantage. Advocate General Giovanni Pitruzzella at the EU Court of Justice (CJEU) suggests setting aside the General Court ruling and referring the case back for review, stating that the General Court made legal errors and failed to assess certain methodological errors that tainted the tax rulings.
The CJEU, set to rule in the coming months, typically follows such recommendations. The case, identified as C-465/20 P Commission v Ireland and Others, awaits further developments.
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What is the EU policy on taxes?
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If you’re a company based in the EU, you’ll likely need to charge VAT on most goods sold within the EU. The VAT is charged in the country where the goods are consumed by the final consumer. Services are also subject to VAT, charged at the time they’re carried out in each EU country.