The iPhone maker is expected to send a six-man
delegation headed by Chief Financial Officer Luca Maestri to the
two-day court hearing at the Luxembourg-based General Court, the
EU's second highest court.
In August 2016, the Commission said tax rulings by Ireland in
1991 and in 2007 had artificially reduced Apple's tax burden for
over two decades, effectively making it illegal state aid.
European Competition Commissioner Margrethe Vestager pointed to
a 0.005% tax rate paid by Apple's main Irish unit in 2014 as an
example of the unusually low payments by the company.
Apple is expected to argue that it did nothing wrong as it had
followed Irish and U.S. tax laws. It made similar arguments in a
blog following an EU tax ruling a couple of years ago.
It will tell the court that the bulk of its taxes are owed to
the United States because the majority of the value in its
products including design, engineering and development, is
created there.
Ireland, which has accused the Commission of exceeding its
powers and interfering with the EU member's national sovereignty
over tax affairs, is also challenging the EU ruling.
The Irish tax regime is a key attraction for multinational
companies, which employ around 10% of the country's workforce.
Luxembourg is backing Ireland while Poland is supporting the
Commission. Vestager has also gone after sweetheart deals
offered by the Netherlands to Starbucks <SBUX.O>, Luxembourg to
Amazon <AMZN.O>, Fiat <FCHA.MI> and Engie <ENGIE.PA> as well as
a British tax scheme for multinationals.
The EU executive's tax crackdown suffered a setback in February
this year when the General Court dismissed its ruling against a
Belgian tax break that benefited BP <BP.L>, BASF <BASFn.DE> and
more than 30 other multinationals, saying that it was not an aid
scheme.
However, the Commission relaunched this case on Monday.
[B5N25N00B]
The joint Apple cases are T-778/16 Ireland v Commission and
T-892/16 Apple Sales International and Apple Operations Europe v
Commission.
(Reporting by Foo Yun Chee; editing by Philip Blenkinsop and
Emelia Sithole-Matarise)
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