Apple accuses EU of misunderstanding its business in €13bn court case
Apple has accused the European Commission of misunderstanding its business as the tech giant’s appeal against a €13bn tax order entered its second day.
The Commission had accused Apple of having dodged taxes and received illegal state aid from Ireland, ordering the company to pay a €13bn Irish tax bill in 2016.
Read more: Apple tells EU court €13bn Irish tax bill ‘defies reality and common sense’
Both Apple and Ireland challenged the ruling, and their appeal is being heard in the Luxembourg-based general court. The hearing is scheduled to last two days.
Apple lawyer Daniel Beard argued today that the company’s Irish operations were not as crucial to its business as suggested by the Commission’s case.
“Yes, Apple chief executive Tim Cook said there were decisions taken in Ireland, but not strategic decisions,” Reuters quoted Beard as saying. Beard was referring to testimony given by Cook to a US Senate hearing in 2013, which forms a key part of the Commission’s case.
Addressing the court, Paul-John Loewenthal, a lawyer for the Commission, rejected criticism that EU executives had declined an offer to visit Apple’s facilities in Cork.
Loewenthal said such a visit was not necessary. “What would a site visit accomplish?,” he asked.
Read more: How Apple will fight its Irish tax bill
The case is a key test for European Competition Commissioner Margrethe Vestager, who has spearheaded a drive to cut down on sweetheart tax deals been given to multinational companies.
Vestager had cited the 0.005 per cent rate of tax paid by Apple’s main Irish unit in 2014 as evidence of it paying unusually low amounts of tax. Apple has disputed the figure, and claimed to be the largest taxpayer worldwide.
Main image credit: Getty