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THE HIGHEST COURT in the EU will today hear the European Commission’s appeal against the ruling that overturned its own 2016 ruling finding that Apple had underpaid €14.3 billion in tax owed to Ireland.
Apple and successive Irish Governments have consistently made the argument that tax is not owed.
If the appeal wins out, the money will have to be paid to the Irish State.
The original tax bill was just over €13 billion, but as the case has dragged on interest has been added to the sum that may have to be paid.
Back in 2020, the General Court of the European Union ruled in favour of Apple and the Irish State’s legal challenge against the Commission’s order for the allegedly unpaid taxes to be handed over.
Previously, the EU General Court sided with Apple and the Irish State, and said that the Commission failed to prove that the company had received tax advantages from the Irish state.
The Commission moved to appeal that decision in September 2020.
EU Competition Commissioner Margrethe Vestager said that the General Court had made a “number of errors of law”.
Now the Court of Justice of the European Union will have the final say on the matter.
The legal row began after a probe was launched by the Commission into Apple’s tax affairs in Ireland.
It found that two tax rulings delivered by Irish Revenue in 1991 and 2003 allowed the company to funnel profits through Ireland without paying tax in the jurisdiction.
The Commission said that this was a breach of State Aid rules which are set up to prevent favourable treatment of individual companies by EU member states.
European Commissioner for Competition Margrethe Vestager said at the time of the initial ruling that “Ireland had granted illegal tax benefits to Apple”.
The General Court disagreed with the Commission, finding that it had “incorrectly concluded, in its primary line of reasoning, that the Irish tax authorities had granted” the two Apple entities anchored in the country an unfair advantage.
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It says everything about this government that we could have an extra 14bn that we desperately need and they won’t take it because they are quaking in their boots that they anger the tech giants. How many healthcare staff and houses and other resources could get with this money?
@Sylvia Power: You clearly don’t understand what happened here. Ireland was never owed “an extra 14 billion”.
@honey badger: Over 10 years, Apple paid close to zero tax. The Commission ruled this to be a breach of Ireland’s tax law. The govt is saying it isn’t. If Apple paid almost zero tax then I think it should be returned, that is what would happen with a regular citizen, so I don’t see why corporations should get different treatment
@Sylvia Power: Yes but Ireland would only be entitled to a percentage of that 14 billion regardless. Ireland was never entitled to the full amount.
@Sylvia Power: it’s the EU that is saying Ireland is owed the money. If anything, the £14bn should actually be paid to the countries that made the profit that is being sent to Ireland (allowed under their own individual tax laws) that benefits from Ireland’s low tax regime. Be careful what you wish for….
@Yvon Queguiner: like a little*
@Yvon Queguiner: Why the insult? What are you trying to achieve?
@Yvon Queguiner: Doesn’t make it less insulting. A despicable comment either way.
@Sylvia Power: Ireland wouldn’t see a cent. It would be used to pay back debt from the bailout we received all those years ago!!
@Yvon Queguiner: Thanks for clarifying your insulting remark.
@Sea-point Point:
It doesn’t matter who is exploited.In China the workers jump from the roofs of the Apple factories and here in Europe their private jet flights f… up the climate.
This has to stop and the string pullers like PWC and Co. have to be banned from operating in Europe.
Money talks.
@antisocialbarber:
The bailout was bred by the same mafia as Apple’s tax rip-off.
@Juri Hertel: well it sorta does clearly, as you go on to list a whole bunch of people exploited differently…
@Sylvia Power: or free child care for all children up to 5 years old
@Sylvia Power: “I don’t see why corporations should get different treatment”
Apple’s defence is that they pay tax in the US and that all taxes have been paid in this case.
If I have an income from a property in France and pay my taxes there I don’t have to pay in Ireland as long as I follow Revenue’s rules and guidelines.
@Declan Joseph Deasy: In the unlikely event that we get the €13b the one thing we can’t do is spend on day to day spending.
We’ve been there before and down that road lies ruin.
@Stanley Marsh: I think if a corporation uses our (tax-payer funded) water, our electricity, our labour and our infrastructure to generate profits, they should pay their dues.
I genuinely believe this government would rather Apple have the money then spend it on public services for the people.
@Brian Boru: is that why you use a pseudonym, so colleagues don’t realise you’re actually that daft….?
We can see here the government ate NOT working for the good of the people.
@David Mercedes: are
@David Mercedes: I figured that’s what you meant.
Ireland is a tax haven, those who don’t see it choose to be blind. The recent R and D loophole is the reason we are seeing the huge increase lately,
but this won’t last. Then the totally spurious argument that if you create employment, this somehow means you don’t have to pay tax is wrong. An employee of a multi billion euro corporation will, between income tax, usc and vat give roughly 60% to the government, but these corporations pay negligible rates. If you think this is right then you are brainwashed and part of the problem.
Ireland has a reputation among other nations of being tax pirates and somewhat wanting in data regulation. We can wear the green shirt all we like, but ask yourselves where is the actual Irish economy and what role do Irish firms play in it outside of SMEs, because they are largely ignored by this govt and economic model. Multinationals pay little to no tax, whilst Irish SMEs are hammered. Further why should Apple pay next to zero, but PAYE workers pay over half their earnings on average. We deserve much better.
OT
In case someone wants to know the background of the FB-Meta-Google mafia case:
It was the Dutch consumer organisation and two other parties who brought them to court, a fact which is not mentioned in the Irish media.
The Dutch state news agency NOS reports: nos.nl/artikel/2476129-consumentenbond-komt-met-massaclaim-tegen-google
One wonders why Ireland’s consumer organisation exists.
The Dutch consumer’s organisation is now preparing a massive compensation case, all Google users in Europe might benefit.Again: not mentioned in Ireland
See the court ruling:
uitspraken.rechtspraak.nl/#!/details?id=ECLI:NL:RBAMS:2023:1407
Apple did pay taxes and the idea that Apple paid no taxes creates a false picture. They paid their employees PAYE and PRSI and vat on sales in Ireland. They may have paid commercial rates and tax on services they purchased. What they did not do was pay enough corporation tax on foreign earnings according to the EU. Meanwhile Ireland is saying that a deal, good or bad, was a deal legally and Apple should not have to pay this money. The people shouting about collecting the money are forgetting that at a stroke of a pen Apple could find somewhere else to channel it’s oversea sales denying us future earnings from Apple, and potentially other companies, if Ireland looses the case or breaks it’s own agreements. Warning, many outside Ireland are jealous of our success. . .
@Niall Ó Cofaigh: people who say the money could be put to good use tackling the shortage of housing seem to forget that, bolstered by foreign company’s taxes, we are running a budget surplus and already have the money to tackle issues, just we seem to lack the understanding and will to build. I read that over the last few years about 1 billion euro, or more, remains unspent from the housing budget, so do not blame homelessness on Apple’s low tax rate or failing to pocket the 13 billion. I think many issues are a lot more complex that appear on the surface but I do know without the multinationals and IT companies ireland would be a lot poorer
@Niall Ó Cofaigh:
Gosh.
The employees paid the PAYE and PRSI.Make yourself familiar with economics.
The “Apple-Lady” who organised the rip-off lives here in Youghal,East Cork.
The BBC reported.She had a 1.5 company, herself and and a half position as far as I remember.And made € 14 billion tax rip-off.
Mighty PAYE and PRSI contributions I guess :)
Interview her and come back with your findings.Thank you.
@Juri Hertel: The employer pays part of the PRSI also so you’re not quite right there.
Embarrassing. We’re so owned by these people it’s pathetic.
@Bart Teeling: What’s embarassing? Do you understand what’s going on here, because I don’t think you do.
Imagine 14 billion from Apple, 2.5 billion from Meta and 10 billion surplus. That’s 26.5 billion surplus. Don’t tell me we can’t get rid of USC and major tax cuts in next budget!!
@Will Roche: The 14 billion from apple was euro wide, we would only be entitled to 2% of it.
Apple will stay or go, regardless.
Take the money.
Ok, this is actually very simple
14bn in an escrow account for ages pending this decision
IRELAND, US, get a very small amount of this if the decision goes against us/apple
The tax liability is based on the points of sales, most of this 14bn will be going to other countries, not us, we’re just acting as the collecting agent here as that’s where they are tax based.
Why don’t we want this/why did we join apple in the appeal? – Because to not do so would be to give in to the EU’s assertion that we granted State Aid to Apple.
Ireland won’t get a penny ! Because leo or what ever ruling not having morals or dignity or respect ! Or sovereignty
@ibrahim Sudane: Leo and the gang also know the facts of this case. We’d be entitled to only 2% of this 14bn.
Future Headline
Apple wins €14.5bn tax case appeal
Apple announces massive investment in its Irish operations including the manufacturing of its new VR headset to be manufactured at a new IDA approved and funded premises.
Something that’s quite funny here, the Author basically makes it look like we’re due a 14bn windfall, we Ireland. But this article doesn’t appear in the Irish News filter on the site.
Curious to know what people jumping up and down to get rid of multi-nationals think is gonna replace all those jobs? Over 6,000 jobs in Apple in Cork alone – if they left (not saying they would even if this case goes against them but you never know) where are all those people gonna get work? If tax breaks are why they based themselves here, then I say let em have them so the jobs stay here.
Apples employees pay more tax from their wages than Apple do from their profits.
Dont be a dumbass and say the stupid thing yiz know what i mean
Ah here i’ll point it out. An employee pays what about 45/50% on tax on their wages. Apple most certainly do not pay that on their profits.
Slag me all yiz want im off for a days fishing on a big as boat down Wexford way
@Denis Rathsallagh Brady: A lot of Apple’s employees don’t even make enough money to be taxed. They didn’t acquire assets of $346,000,000,000 by paying their employees decent wages.
Build more hotels.
If we dud get it then it will go straight to the coffers of the social dependent as they badly need it let’s keep the Welfare state going everyone
Buy apple shares today
Well girls and boys……seems a ruling won’t be made until November with a final ruling not until early next year. Only ones making money from this are the legal teams
Can you imagine the amount of brown envelopes being passed around, of course they owe it
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