European Commission competition regulators have charged Apple with $15 billion tax order. An appeal against this Order is pending before Europe’s second highest court which will hear the matter on 15th July, 2020. In its Order nearly four years ago, European Commission had stated that Apple had benefitted from illegal state help through two Irish tax Orders which reduced Apple’s tax to 0.005% in 2014 for two decades. European Commissioner Vestager made tax crackdown mainframe of her office period. If she loses this hearing, then it will only slow down or possibly delay the pending cases against Ikea and Nike’s deal with Netherland and against Huhtamaki for their agreement with Luxembourg.
Commissioner Vestager’s prior case against Starbucks for 30 million euros as Dutch back tax had been overturned by the very same court. The same court had overturned the Commissioner’s ruling against Belgium tax scheme for 39 multinationals. Ireland alongside Apple had filed this appeal against the EU Commission’s Order. Experts view this case as loss for Ireland irrespective of the ruling. If Apple loses, Ireland shall be benefitted with 14 billion euros which will help the economy of the nation which has been stumbling since Covid-19’s arrival. The national government will be criticized for the appeal if the appeal fails and Apple pays Ireland the sum with interest. A loss would also mean decline in ability to attract investment into the nation. It would also raise questions and doubts over about the applicability of Ireland’s tax code. But if the appeal succeeds then Ireland will be at a loss of a huge sum and the Government will be criticized for that as well.
Apple was estimated to become a $2 trillion company by this month end. If Apple loses this appeal it will be a massive loss but still a manageable one to the company.
