Apple starts legal battle against $ 14.4 billion fine

In August 2016, the Commission stated that the tax decisions taken by Ireland in 1991 and 2007 had artificially reduced Apple's tax burden for more than two decades, which, in practice, constituted a Illegal state aid.

The European Commissioner for Competition, Margrethe Vestager, cited the tax rate of 0.005% paid by the main unit of Apple Ireland in 2014 as an example of the exceptionally low payments of the l 39. ;business.

Apple will argue that it has done nothing wrong because it has followed the tax rules of Ireland and the United States. The company evoked similar reasoning in a blog after a tax decision of the EU a few years ago.

The company will tell the court that most of its taxes are paid in the US because most of the value of its products – including design, engineering, and development – is created in this country.

Ireland, which has accused the Commission of having exceeded its powers and undermined the national sovereignty of a member of the European Union in tax matters, will also appeal the decision of the bloc.

The Irish tax system is very attractive for multinationals, which employ about 10% of the country's labor force.

Luxembourg supports Ireland, while Poland supports the Commission. Vestager also focused on Holland's advantageous agreements with Starbucks, Luxembourg on Amazon, Fiat and Engie, as well as the UK tax regime applicable to multinationals.

The EU executive's campaign against tax evasion suffered a setback in February this year when the court rejected its decision against an extended tax advantage for BP, BASF and more than 30 multinationals by Belgium , saying that it was not an aid scheme.

However, the Commission relaunched the case on Monday.

By Foo Yun Chee from Reuters