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Apple, Ireland to challenge EC's tax ruling

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Apple, Ireland to challenge EC's tax ruling

Apple Inc. and Ireland will file an appeal against the European Commission's order for the tech giant's €13 billion payment of back taxes to Ireland, the BBC News reported Dec. 19.

The U.S. tech firm argued that it was "a convenient target" by the European Union regulator, while Ireland is also challenging the decision contending that the commission encroached on Ireland's jurisdiction.

In Ireland's published legal argument, it cited that the commission has misunderstood Irish laws and "failed to provide proper reasons for its decision." The Ireland government on Nov. 9 "lodged an application with the General Court of the European Union to annul the whole decision," according to a Dec. 18 news release.

The commission released its decision in August, concluding that Apple's tax benefits in Ireland are illegal under EU state aid rules. It said that the "selective treatment" allowed Apple to pay an effective tax rate of 1% on its European profits, paying substantially less than other businesses.