Apple Wins Backing of EU General Court Over 13 Billion Euro Tax Bill

[I7guy]

Great so Apple can happily continue nickel and diming their customers whilst only paying centimes on the euro in taxes.

Surprise outcome for sure. What one thinks of this is less the matter, than another big thing that can be put to bed.

As far as the above, yes, apple will happily continue to nickel and dime their customers. The great thing about competition is those who dislike Apples' products, political views, management etc, can freely leave. Those that like the products and don't feel as if they are getting the shaft with every purchase...will stay with apple.
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The biggest mistake the EU made, was spending millions on lawyers when they should have just come on here for free advice

That is the case with many of the events of the day. Companies, people should come to MacRumors for advice and ideas, because we are:💪.

 

[Baymowe335]

This was another thing I predicted. Apple follows all tax law and is just smarter than the others in general.

 

[SarcasticJoe]

Actually, when Ireland joined the EU they kept their tax structure in place, as was the policy of the EU. Ireland and Apple then used that to their mutual advantage.

Sure, Ireland kept it's low corporate tax when it joined the EU, but this isn't about that.

In the EU you're allowed to have taxes as high or low as you want to, but what you're not allowed to have are company-specific next-to-nothing tax deals like this as they qualify as market skewing state aid. Ireland knew that the EU wouldn't approve of this so, like most of these deals, it was kept confidential and the EU (along with the public) only found out about it after it was leaked.

Americans in general don't seem to understand this, but in the EU market-skewing company-specific aid like this is just not allowed and this goes back to before the EU. The EU's loss was not in that this was Irish state aid for Apple, that was obvious, but that they didn't prove strongly enough that this state aid skewed the market.

 

[jlc1978]

Sure, Ireland kept it's low corporate tax when it joined the EU, but this isn't about that.

In the EU you're allowed to have taxes as high or low as you want to, but what you're not allowed to have are company-specific next-to-nothing tax deals like this as they qualify as market skewing state aid. Ireland knew that the EU wouldn't approve of this so, like most of these deals, it was kept confidential and the EU (along with the public) only found out about it after it was leaked.

Americans in general don't seem to understand this, but in the EU market-skewing company-specific aid like this is just not allowed and this goes back to before the EU. The EU's loss was not in that this was Irish state aid for Apple, that was obvious, but that they didn't prove strongly enough that this state aid skewed the market.

It seems the EU's decision was overturned by the EU's General Court on the basis it did not constitute illegal state aid since it supports economic development, and thus OK.

Apple has €13bn Irish tax bill overturned

The EU's second highest court says the tech giant will not have to pay a record sum in back taxes.

www.bbc.com

 

[SarcasticJoe]

It seems the EU's decision was overturned by the EU's General Court on the basis it did not constitute illegal state aid since it supports economic development, and thus OK.

Did you even read that article? Because even it states that the case was overturned on insufficient evidence, not that the what they got from the Irish government itself was totally legal.

 

[jlc1978]

Did you even read that article? Because even it states that the case was overturned on insufficient evidence, not that the what they got from the Irish government itself was totally legal.

The BBC article doesn't provide the details on the ruling, you really need to read that to understand why it was overturned. "insufficient evidence" is an oversimplification of the ruling.

The court ruled the EU did not prove that Ireland's deal with Apple violated EU law. They basically said the arguments you made did not show that the taxation scheme constituted a selective advantage and so overturned the earlier decision. So, if you can't prove what they did was illegal it seems legal to me. The EU may not like Apple's deal, but they made the rules and until they can prove Ireland is in violation what they did is certainly. That's kinda how the law works, unless you can prove what someone did violated some regulations then it is legal. Either build a better case or change the rules. You can't just say "I don't like what you did so even if it doesn't violate the law I am going to punish you."