Apple & Ireland vs. the European Commission

By: Miguel A. Rodriguez

09:45, 14 September 2020

Apple and Ireland won against the European Commission’s allegations.

The middle of the week came bearing positive news for Apple. Alongside Ireland, the company won an appeal against the European Commission. 

How the story began

Everything started in August 2016, when the Commission concluded that the Irish government granted illegal tax benefits to Apple. It requested 13 billion EUR worth of taxes, and more than 1 billion EUR in interest payment to the Irish government.

According to the European Commission, Ireland allowed Apple to pay “substantially less tax than other businesses over many years.” It turned out that in 2003, Apple paid for its European profits a tax of 1%. By 2014, the corporate interest dropped to 0.005%.

Why did Ireland and Apple still win?

The European Union’s general court motivated that the European Commission was short on providing clear information about Apple's alleged advantage.

In response to the ruling, the government stated that the American company "was charged taxation in line with normal Irish taxation rules," and "that there was no special treatment provided to the two Apple companies."

From the specialists' perspective, this case is important because taxation slowly takes a central place as the governments are trying to come up with more money to help the crippled economies.

In today's pre-market session, Apple's stock price traded 1.90% higher.

See what happens on the market every day by reading the latest financial news on CAPEX.com!

Sources: cnbc.com, thejournal.ie


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