Apple wins tax dispute: The struggle continues

It is a very far-reaching ruling, the EU competition Commissioner Margrethe Vestager not soon likely to recover. The General court of the European Union has dec

Apple wins tax dispute: The struggle continues

It is a very far-reaching ruling, the EU competition Commissioner Margrethe Vestager not soon likely to recover. The General court of the European Union has decided in the first instance, that the historical Commission's decision in 2016, against Apple and Ireland is void. More than 14 billion euros in taxes, the group would have had to pay, it would be gone after the competition authority. This was far more than in any other EU-state aid proceedings. The court conceded this decision completely, in itself, is already very remarkable.

but There is more than a single case. In the absence of other options, the Commission has discovered a few years ago the law on competition as a lever in the fight against tax avoidance. She took the individual agreements in its sights, the national tax authorities, international corporations complete, in order to regulate the modalities of their tax payments.

the court has not discarded the principle of consideration, complete

This practice is used especially Luxembourg, the Netherlands, Belgium and Ireland. The conclusion was that these countries operated as a business location. According to the Brussels opinion is not admissible, as long as only a single company to get the perks. These apply to the EU-Commission as illegal state aid. The court has not rejected the principle of consideration completely, but made it clear that the competition authorities have to apply much more restrictive.

In the Apple case, the profits to be taxed would be the company, according to the Commission, apparently, not there, but in the United States. Vestager has now pointed out that you can get in Luxembourg, in a similar case, which concerned rules for Starbucks in the Netherlands, right. But that doesn't change the fact that the law on state aid is in principle against tax avoidance and design, the unsuitable Instrument.

The discussion of the is also of the correct global allocation of profits of international corporations, must be fought at international level. That there is a thick Board is to be drilled, is true: It is true that the judgment is likely to reinforce the tirades of President Donald Trump against the "tax Lady," Vestager. But it doesn't help. With the law on state aid Brussels is to come on a part-time basis.

Updated Date: 16 July 2020, 02:19

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