Apple Inc. (NASDAQ:AAPL) is known for being slapped on the wrists. However, the latest fine placed against Apple from the European Union may have been a step too far. EU originally charged Apple with a $14.5 billion tax fee, this was in August.
However, the tech giant is not just taking the knock. The behemoth launched its official appeal against European Union Tax fine, in order to contest whether the company should be liable to pay what the EU is requesting.
The General Counsel for Apple, Bruce Sewell, stated, “Apple is not an outlier in any sense that matters to the law. Apple is a convenient target because it generates lots of headlines.”
Irelands Role To Play In Apple Vs. European Union
Apple is not the only giant, that believes the fine placed against the company, was a step too far. Ireland, also stated that the European Union had misinterpreted their own laws, which caused the fine, which was placed against the tech giant.
The argument on behalf of Apple, from Ireland, was originally launched on Monday in the form of three summarized pages on the matter. In regards to the appeal, it is expected that a redacted version, will be published regarding the decision of the European Union, as early as this week.
However, the European Union commission is in a disagreement to what they are being told. The commission stated that this is playing unfair under the European Union laws, as giving certain companies advantages of lower taxes is unfair to smaller competitors.
It is also important to notice that this bill filed against the tech giant, is by far the highest that has been issued yet. However, it is not the end. The European Union Push has targeted various corporate firms who are keeping money offshore.
Causes of the fine against Apple for tax-reduction
In the case of Apple vs. The European Union, it was made clear that the reason behind the fine, is due to the company allocating itself, illegal state aid. The reason behind these allegations is due to the company is due to pre-approved arrangements, that two locations in Ireland, are able to allocate all profits to the companies head office.
This, in turn, caused these two offices to be liable to pay less than 1 percent of tax on profits, which the European Union declares is not fair under their own laws, regarding competitors being liable to pay a higher tax rating.