The #Apple State Aid case due tomorrow 11am.

Time for a refresher and what to expect (taking into account previous judgement on #Fiat and #Starbucks). So I made this small thread.

Biggest #tax fine in history and according to Tim Cook ''total political crap''
Ireland granted a ruling to Apple Sales International & Apple Operations Europe. Profits in both were split between a headoffice (non-tax resident) & a branch (tax resident in Ireland). All revenue generated with sales in EMEA were registered in the headoffice & not taxed.
YES, you read it correctly EMEA. We often forget revenues were also flowing out of Africa, India and Middle East in this structure. This is not only an European issue, it is a developing countries issue too.

Period of recovery is 2003-2014 and the amount is up to 13 billion EUR.
What happened previously in #Starbucks, #Fiat and the Belgian excess profits scheme?

Can these judgments tell us something about tomorrow? Yes they can !

Remember in both Starbucks and excess profit schemes the European Commission (EC) lost the case in Court.
Well simply put the EC lost its case on the excess profit rulings as the Court did not agree with the fact it was a ''scheme''. The Court does not deny that each case individually could constitute individual illegal state aid.

So not relevant for Apple. https://ec.europa.eu/commission/presscorner/detail/en/IP_19_5578
#Starbucks and #Fiat

In both cases the Court agreed that the EC can investigate the arm's length application by national tax administrations under the state aid rules.

However in Starbucks the EC failed to calculate properly the advantage given. But in Fiat it succeeded.
What to expect for Apple?

Full recovery of 13 billion EUR or perhaps less as a big question is whether all those profits really should have been registered in the Irish branch. In my view it is unlikely the EC will lose the case.
What to expect politically?

Well the US will react. In case Apple and Ireland lose this will further increase tensions between EU on tax and trade matters.

Tomorrow the EC also launches a new action plan against tax avoidance and evasion.

More tomorrow!

END
Sorry forgot!

Pending investigations are #Ikea and #Nike. In particular looking forward to Nike!
You can follow @JohanLangerock.
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