The General Court of the European Union's decision to overturn a $14.9 billion Irish tax bill issued to US tech giant Apple indicates that the EU has to implement stronger corporate tax reforms in order to prevent avoidance, the Oxfam charity said on Wednesday
MOSCOW (Pakistan Point News / Sputnik - 15th July, 2020) The General Court of the European Union's decision to overturn a $14.9 billion Irish tax bill issued to US tech giant Apple indicates that the EU has to implement stronger corporate tax reforms in order to prevent avoidance, the Oxfam charity said on Wednesday.
"Cases such as this highlight the extreme nature of corporate tax avoidance in the EU, costing governments hundreds of billions of Euros every year - money that could be used to deliver essential services, such as health and child care, which are even more critical in the wake of the COVID-19 pandemic. It is now time for the European Commission to bring in effective measures to address the continued existence of corporate tax avoidance," Chiara Putaturo, Oxfam's inequality and tax policy adviser, said.
The European Commission ruled in 2016 that the Irish government gave Apple unjustifiable tax breaks and ordered the company to pay back the funds. At a hearing, the General Court of the European Union annulled this decision, and Putaturo urged Brussels to enact the required reforms to get tough on firms that avoid paying tax.
"The overturning of the European Commission's decision in this state aid case make it clear that fundamental and urgent tax reforms at a EU and global level are needed," the Oxfam representative said.
The Irish government has also welcomed the General Court's judgment, saying that it proved that Dublin did not give the tech giant any special treatment.
