Apple Files Appeal Against European Commission on $14.5B Tax Case
Apple filed an appeal to the European Courts of Justice on Monday, Feb. 20 against the ruling from European Commission. The ruling was issued August last year ordering Apple to pay $14.5 billion unpaid taxes to Ireland.
In its complaints, Apple argued the European Commission has violated the company’s fundamental right. Appple accused the Commission for conducting unfair treatment as reported by Financial Times. In invetigating the case, Apple alleged that European Commission had failed to conduct diligent and impartial investigation.
Apple was hit by the taxation report from the European Union in August last year. After a thorough investigation, European Commission found that Apple €13 bilion in underpaid taxes to Ireland. The Commision ruled Apple must levy the amount to Ireland.
The company issued its 14 points of objections with the ruling. One of the main points of appeal is that the Commission made a fundamental error in interpreting taxation law in Ireland.
Apple insisted that the copyright protection in relation to commercialization of Apple’s intellectual property was registered and managed in the United States. Therefore, even though Apple made a profit from the activities in Ireland, the profits are not attributable to Ireland.
The Cupertino-based technology company seeks to annul the $14 billion payout and demanding all of the company’s legal cost in the case to be reimbursed by the European Commission. In respond to Apple’s appeal, European Commission has announced in its statement to defend the decision in court as reported by Business Insider.
In the August ruling, European Union Competition Commissioner Margrethe Vestager explained the unpaid taxes. The ruling stated that Ireland, as the member of the European Union, could not give tax benefits to allow the companies to pay substantially low taxes than it has to pay. Such tax benefits has lower the amount of taxes Apple had to pay from the one percent rate to 0.005 percent.
Watch the report from Bloomberg regarding the EC ruling to order Apple paying $14.5 billion unpaid taxes to Ireland below: