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US to support Apple in EU General Court over alleged Irish fraud

The U.S. government has filed a complaint with the European Union’s General Court so that it can intervene in the tax fraud case still underway between Apple and the European Commission, according to Reuters.

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US to support Apple in EU General Court over alleged Irish fraud
US to support Apple in EU General Court over alleged Irish fraud

Last August, after a three-year investigation, the European Commission determined that Apple had been committing tax offences in Ireland . Cupertino’s company allegedly paid only 0.005% to 1% in taxes in that country between 2003 and 2014, a very low figure compared to the tax rate that companies have to pay in the Irish country, around 12.5%. At the time, the European Commission ordered Apple to pay some 13 billion euros in back taxes to Ireland as a penalty after the alleged fraud to the Irish public prosecutor’s office was discovered. Apple appealed the case last December , arguing that the European Commission made “fundamental errors” by not recognizing its “profitable activities”, in this particular case the development and commercialization of intellectual property, being controlled and managed in the United States and not in Ireland.

“I can confirm that the United States filed a request with the General Court of the European Union to be able to intervene in the case of alleged illegal aid to Apple,” said the source, who wished to remain anonymous due to the seriousness of the matter. The report does not specify the date on which the application was submitted, so it is not clear whether it occurred under the administrations of Barack Obama or Donald Trump.

Ireland has also appealed the case, denying at all times favourable tax treatment to the American company. In statements collected by the media, the Irish government said that the total amount of the tax in this case was paid by Apple, adding that no illegal aid was provided to them. “Ireland does not make deals with taxpayers,” the Irish government spokesman said.

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One of Apple’s top lawyers, Bruce Sewell, previously said that the company is a ” convenient target ” of the media and its rivals because it “generates a lot of headlines”, making European Commissioner Margrethe Vestager the center of all headlines and targets after imposing the apple company the highest fine in the history of the European Commission. The General Court is expected to hear and review the case by the end of 2018, where the Cupertino case will be decided.

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