The
European Commission´s decision regarding Apple is the new subject in the priority
list of EU concerns. Two days ago, after a two-year probe, Brussels announced
that the tax favours Ireland had offered Apple during many years had been
judged illegal. It ordered the US multinational to pay tax arrears – just €13
billion plus interest, which adds another €1.4 billion to the bill.
Now,
the government of Ireland says they do not approve of the EC ruling. They don’t
want the money and consequently they have decided to seize the European Court
of Justice for it to annul the decision taken by Brussels.
This
matter raises a number of issues.
On
the political front, there are several: it complicates the economic and trade
relations with the US, taking into account that the US Administration itself
has in the recent past imposed very heavy fines on EU companies; it questions the
role of the EC on matters of national taxes, particularly when the country in
question is at the periphery of the European economic space, has very limited
resources and needs to attract investment to generate jobs; and there is the
impact of all this on public opinion, at a time when the European citizens are drowning
in deep tax waters, being taxed beyond the reasonable and seeing, at the same
time, that the big corporations can do smart tax planning and pay amounts as
low as 0,005% on gains, as Apple did in Ireland in 2014.
On
the legal front, we can expect a long process. It will be a field day for lawyers
and lovers intricate disputes. It will particularly
be interesting to study the arguments of each side. There will a new doctrine
on multinationals, on national taxes, on investment advantages and benefits. It
will be fascinating, if one is patient enough to follow the matter.
However,
the best solution would be an arbitration. That´s what we have to recommend. There
is a case, no doubt, but there is also an excellent opportunity to be realistic
and even-handed.
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