Tax Notes Talk
Getting to the Core of the Apple State Aid Decision
Sep 20, 2024
Ryan Finley, a contributing editor known for his expertise in tax law, joins the conversation to dissect the EU Court of Justice's ruling on Ireland's €13 billion unlawful state aid to Apple. He delves into the complexities of the Advance Pricing Agreements that have fueled ongoing judicial appeals. The discussion also navigates the broader implications of the ruling for future state aid enforcement across EU countries and how it might influence tax strategies for multinational corporations.
20:06
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The EU Court of Justice ruled that Ireland's tax arrangements with Apple constituted unlawful state aid, challenging prior expectations.
- The decision emphasizes the need for accurate profit attribution based on actual functions performed by multinational companies in their local entities.
Deep dives
EU's Court Ruling on State Aid
The recent ruling from the EU's Court of Justice determined that Ireland provided unlawful state aid to Apple, resulting in a recovery order of 13 billion euros. This decision surprised many experts who anticipated the court would follow earlier judgments that favored member states. The ruling emphasized that Ireland's advanced pricing agreement (APA) allowed for minimal taxation on Apple's vast profits due to its arrangement of entities, which, despite being officially based in Ireland, functioned largely from the U.S. The court indicated that most of the income attributable to Apple's intellectual property should have been taxed in Ireland, suggesting a misapplication of the arm's-length principle in the original agreements.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
