Report Says U.S. Government Filed to Intervene in Apple's Tax Appeal in Europe
The U.S. government has filed an application with the General Court of the European Union to intervene in an ongoing tax-related case between Apple and the European Commission, according to Reuters.
"I can confirm the United States filed an application with the European Union General Court to intervene in the case involving the retroactive application of state aid rules to Apple," said the source, who declined to be named because of the sensitivity of the matter.
The report did not specify when the application was submitted, so it's unclear if it occurred under the Barack Obama or Donald Trump administrations.
Last August, following a three-year investigation, the European Commission found Apple received illegal state aid from Ireland. The iPhone maker allegedly paid between 0.005 percent and 1 percent in taxes in Ireland between 2003 and 2014, compared to the the country's headline 12.5 percent corporate tax rate.
The European Commission ordered Apple to pay up to 13 billion euros to Ireland in back taxes as a result of its decision.
Apple has not paid the amount and appealed the case in December, arguing that the European Commission made "fundamental errors" by failing to recognize that its "profit-driving activities," in particular the development and commercialization of intellectual property, were controlled and managed in the United States.
Ireland has also appealed the case, denying that it gave any favourable tax treatment to Apple. In a statement, the Irish government said the full amount of tax in the case was paid by Apple, adding that no state aid was provided. "Ireland does not do deals with taxpayers," the country said.
Apple's top lawyer Bruce Sewell earlier said the company is a "convenient target" because it "generates lots of headlines," allowing European commissioner Margrethe Vestager to become "Dane of the year" for 2016.
The report, citing a source with knowledge of the matter, said the General Court is expected to hear the case in late 2018.
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