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Ireland: Gov accuses EC of exceeding its powers in Apple tax ruling

 |  December 19, 2016

Ireland’s legal challenge to a European Commission ruling that Apple return billions in unpaid taxes will accuse Brussels of exceeding its powers.

The Dublin administration said the EU’s competition watchdog had interfered with its sovereignty in finding that the tech giant enjoyed a special deal allowing it to pay 0.0005% tax in 2014 – 50 euro for every one million of profit.

Ireland is appealing against the order to recoup 13 billion euros and will argue that the Commission is attempting to rewrite Irish tax laws and that Apple’s Irish subsidiaries paid all tax which was properly due.

A Department of Finance submission said: “The Commission has exceeded its powers and interfered with national tax sovereignty.

“The Commission has no competence, under State aid rules, unilaterally to substitute its own view of the geographic scope and extent of the member state’s tax jurisdiction for those of the member state itself.

“The purpose of the State aid rules is to tackle State interventions which confer a selective advantage. The State aid rules by their nature cannot remedy mismatches between tax systems on a global level.”

The Commission’s inquiry found that Ireland’s treatment of Apple allowed the global brand to avoid taxation on almost all profits generated by sales in the entire European single market.

Full Content: Silicon Republic

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