Apple Appeals Against EU Commission’s $14 Billion Back Taxes Ruling
Apple was imposed with a record $14 billion EU tax demand. In contrast to this, the company is now arguing that EU regulators have completely ignored corporate law and tax experts. Moreover, according to the senior executive, the regulators have chosen a method to maximize the penalty. Henceforth, the company is appealing against EU's tax ruling decision this week. Let's see some more details on the subject.
Apple To Appeal Against EU Commission's $14 Billion Tax Demand This Week
This takes us to the investigation conducted by the European Commission, detailing that Ireland had granted Apple special tax benefits which allowed it to pay less taxes compared to other companies or businesses. However, since the said fact has been ignored deliberately, the company was penalized with a hefty $14 billion to be paid as taxes.
The company will be filing an appeal against the body at Europe's second highest court. According to the General Counsel Bruce Sewell, the tax was imposed on the company because it “is a convenient target because it generates lots of headlines.” Apart from this, the body can always argue that Apple uses transfer shares, "arm's length" principle and many other mechanisms to pay less taxes in the region. However, all of the above mentioned methods comparatively constitutes the accumulation of lesser taxes than what is imposed currently.
Luca Maestri, Apple's Chief Financial Officer, the European Commission overestimated the importance of Apple's Cork headquarters in Ireland. As it is said, all the profits of Apple's Irish headquarter were generated outside of the United States. Moreover, this on its on is not a place that takes into account all the engineering or generated any kind of IP for Apple. Other than this, Apple's CFO also states that under the presidency of Donald Trump, we hope that there will be new tax reforms which will allow U.S companies to get greater tax breaks. This will happen when the companies will bring foreign profits to the country.
Other than this, the Ireland government will also appeal against the European Commission's tax ruling decision. The Ireland government is doing this to protect multinational companies that set up businesses in the country in an attempt to benefit from appealing tax regime. We will hear more on the matter, so be sure to stay tuned with us.
This is it for now, folks. What are your thoughts on Apple's appeal against European Commission's $14 billion tax demand? Share your views with us in the comments.