Apple slices EU as court battle over tax bill begins

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Lawyer Daniel Beard claims tax demand delivered in 2016 'defies reality and common sense'. FMTNews

LUXEMBOURG: Apple went on the offensive against Brussels in an EU court on Tuesday, fighting the European Commission’s landmark order that the iPhone-maker reimburse Ireland €13 billion in back taxes.

Ireland, which is similarly appealing against the decision, also testified at the start of two days of hearings, and lashed out at the EU’s “astonishing” interpretation of tax law. This privilege allegedly gave Apple an advantage over other companies, allowing it to avoid taxes between 2003 and 2014 of around €13 billion which, according to Brussels, constituted illegal “state aid” by Ireland.

The group insists that it is in the United States, where the company invests in research and development and thus creates wealth, that it must pay taxes on the revenue in question. The EU’s Competition supremo, Vestager, is in particular accused by the US president of “hating” the US.

 

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