LUXEMBOURG - Apple Fights $14 Billion EU Tax Order

Arno Froese

The European Union’s order to Apple to pay 13 billion euros ($14 billion) in back taxes “defies reality and common sense,” the U.S. firm said as the two sides sparred in a case key to the EU’s crackdown on sweetheart deals to multinationals.

The iPhone maker is appealing to Europe’s second highest court to overturn the European Commission’s 2016 ruling that it pay the record sum to Ireland.

Ireland, whose economy has benefited from investment by multinational companies attracted by low tax rates, is also challenging the Commission’s decision.

Apple also accused the Commission of using its powers to combat state aid “to retrofit changes to national law,” in effect trying to change the international tax system and in the process creating legal uncertainty for businesses.

The EU executive dismissed the arguments, saying it was not seeking to police international tax laws and accused Ireland of not having done its homework when assessing Apple’s taxes.

Apple’s arguments at the General Court, Europe’s second-highest, came after the EU executive in 2016 said the tech giant benefited from illegal state aid due to two Irish tax rulings which artificially reduced its tax burden for over two decades.

Apple’s lawyer Daniel Beard dismissed criticism of the 0.005% tax rate paid by Apple’s main Irish unit in 2014, which was cited by the Commission in its decision, saying the regulator was just seeking “headlines by quoting tiny numbers.”

-www.reuters.com, 16 September 2019

Arno's commentary

The global world is still in the making, but has well advanced by integrating the nations when it comes to taxes. Courts in various countries are busy deciding who should pay what to whom. Quite naturally, this process requires a more unified law, with the attempt to plug loopholes on the one hand, and fill their treasury coffers on the other. This is now the new world war; it’s between the merchandisers, the financiers and the politicians, but that too will one day end, according to the prophecies found in Revelation. Chapter 18, verse 11 reads: “And the merchants of the earth shall weep and mourn over her; for no man buyeth their merchandise any more.”

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

Read more from this author

ContactAbout UsPrivacy and Safety