EU General Court Annuls European Commission Decision On Irish Tax Ruling In Favor Of Apple

EU General Court Annuls European Commission Decision on Irish Tax Ruling in Favor of Apple

The General Court of the European Union on Wednesday reversed the decision of the European Commission concerning two tax rulings issued by the Irish tax authorities in favor of US tech giant Apple, according to the court's press release

MOSCOW (Pakistan Point News / Sputnik - 15th July, 2020) The General Court of the European Union on Wednesday reversed the decision of the European Commission concerning two tax rulings issued by the Irish tax authorities in favor of US tech giant Apple, according to the court's press release.

In 2016, the European Commission ruled that Apple had to pay 13 billion Euros ($14.9 billion) to Ireland, after determining that the low tax rate given to the US technology giant by Irish tax authorities broke the state aid rules. Both Ireland and Apple appealed the ruling.

"The General Court of the European Union annuls the decision taken by the Commission regarding the Irish tax rulings in favour of Apple. The General Court annuls the contested decision because the Commission did not succeed in showing to the requisite legal standard that there was an advantage for the purposes of Article 107(1) TFEU [the Treaty on the Functioning of the EU]," the press release said.

Under the article, any aid granted by an EU member state or through its resources in any form, which distorts or threatens to distort competition by favoring certain businesses or the production of certain goods will be incompatible with the internal market, as it affects trade between member states.