Date
15 October 2018
A European court rejected a request from the US government to intervene in Apple’s challenge against an EU order to pay back taxes of up to 13 billion euros (US$15.27 billion). Photo: Reuters
A European court rejected a request from the US government to intervene in Apple’s challenge against an EU order to pay back taxes of up to 13 billion euros (US$15.27 billion). Photo: Reuters

EU court rejects US intervention in Apple’s US$15 bln tax case

Europe’s second-highest court has rejected a request from the US government to intervene in Apple’s challenge against an EU order to pay back taxes of up to 13 billion euros (US$15.27 billion) because it failed to prove a direct interest in the outcome of the case, Reuters reports.

Apple, maker of the iPhone, appealed to the Luxembourg-based General Court a year ago after the European Commission ruled that its “sweetheart” tax deal with Ireland was an illegal subsidy in breach of EU rules against unfair competition.

The administration of then US President Barack Obama had criticized the EU decision, saying the EU was helping itself to cash that should have ended up in the United States.

The US intervention was filed in April, a move to which the Commission objected.

The court said it was unconvinced by the US arguments regarding the alleged negative effects of the EU decision on its tax revenues, the bilateral tax deals with EU countries and its efforts to develop rules on transfer pricing in line with OECD rules.

“The United States of America has failed to establish the existence of a direct interest in the result of the case,” the judges ruled on Friday.

The court also rejected a bid by IBEC Company Limited by Guarantee, a representative body for national and multinational companies operating in Ireland, to intervene in support of Apple and Ireland.

It said IBEC had failed to show that its members’ interests would be affected by the result of the case.

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RC/CG 

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