Image: SIPA USA/PA Images Image: SIPA USA/PA Images TOMORROW MORNING, THE General Court of the European Union will deliver judgment in Apple and Ireland’s appeal against the European Commission’s €13 billion tax ruling.
Domestically, politicians have been piling pressure on the government to forgo another appeal if it loses. Ronan McCrea, professor of constitutional and European law at University College London explains that because of its low corporate tax environment, “Ireland is a member state that is politically invested in one side of the debate about whether the EU should have more powers over member states’ taxation policies”.“It’s very difficult to get any legislation on increasing EU tax powers through the EU legislature because it’s subject to unanimity and member states like Ireland will veto it.
“So, if the Irish government think it’s more likely that the EU will get these powers [after a Court of Justice ruling], then maybe they’re more willing to come to a compromise solution rather than risk losing fully on this issue.” It found that the two rulings had breached EU state aid rules designed to prevent individual companies from receiving favourable treatment from member state governments. As European Commissioner for Competition Margrethe Vestager put it at the time, “Ireland had granted illegal tax benefits to Apple”.