Apple confronted 14 billion dollar tax charge from the European Union Commission in the European Union’s second-highest court today, accelerating the historic tax rift between the iPhone making organization and EU regulator.
In August 2016, Margrethe Vestager, EU competition commissioner had demanded that Apple must pay bay 13 billion euros in taxes to Ireland stating that Apple had accepted illegitimate tax benefits over the time of two long decades. The Government of Ireland and Apple have both appealed the ruling and the CEO of Apple Tim Cook called it absolute political crap.
Substitutes for all the parties, Apple, Ireland, and the EU were present in front of the EU General Coury in Luxembourg today to complete the latest legal challenge. Apple’s six-member group was headed by CFO Luca Maestri. The EU court had last year refused the US officials’ appeal to interfere in the tax fight.
The hearing and proceeding are set to go upto through Wednesday but a possible decision seems far and is expected to be delayed for months. The final ruling is expected to be challenged to the court of justice of the EU.
The EU challenged that Apple’s corporate tax rate on its European profits in 2014 stood at a mere 0.005% whereas Ireland disputes the EU’s explanation of Irish tax law. On the other hand, Apple’s lawyer Daniel Beard claimed in the court today that the EU regulator was targeting “headlines by quoting tiny numbers.”
The US also condemned the EU order stating that American tax laws should be applicable to Apple and President Donald Trump also names Vestager as Europe’s “tax lady.”