The United States Government has asked for an intervention in Apple company's appeal against a specific European Union order. The order involves ordering the American technology company to pay back a monetary amount of 13 billion euros. In the US dollars, the amount comes to $14.8 billion. The amount is to be paid as taxes. Apple has sidestepped paying taxes to the Irish Government.
The tax demand order was issued by the European Commission. The latter said that Apple won a number of sweetened tax deals in its negotiations with the Government of Ireland. According to the EU, these are illegal subsidies. Apple, known for its signature iPhone product, responded by taking its case to the General Court in Luxembourg. This court is Europe's second highest court. Apple filed the case in December. The US criticized the EU action saying the latter is trying to snatch money which rightfully belongs to the United States. The United States was then under the stewardship of President Barack Obama.
The Trump administration followed suit in its intervention. The government, however, declined to elaborate on the matter. President Donald J. Trump has given its nod to a $2.6 trillion tax break in corporate profits. These profits are held by a number of US multinational companies as a component of the country's anticipated tax reform. The United States has already filed the due application for this particular case. The General Court of the European Union has received the application. The US has stated that it will intervene in this case. The logic is that the intervention will be a retroactive one. It involves applying state aid rules. Apple has taken a number of advantages when it comes to state aid.
General Court decisions
It is anticipated that the European Union General Court will hear this particular case in the latter part of 2018. According to Apple, the EU has focused on it as it is an easy target. It also alleged that the enforcer for EU competition have utilized a complete “absurd theory” when it came to calculating this punitive picture. When it comes to paying penalties, McDonald's and the Internet shopping giant Amazon are also in the dock over the tax deals they made with Luxembourg. A number of other companies like Starbucks, Fiat, and Chrysler automobiles were also instructed to pay back all relevant taxes to other European Union countries. They have also challenged the EU rulings.