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Home>Economic Policies Impacting EU Finance>Tax
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15 July 2020

POLITICO: Commission’s tax push emboldened by Apple ruling


Brussels proposes to overhaul tax revenue from sales on digital platforms and other initiatives to tighten the fiscal net.

The European Commission pressed ahead with plans for a corporate tax overhaul Wednesday despite defeat in an EU court over its bid to force Apple to pay more tax in Ireland.

The EU executive body redoubled its vow for multinationals and digital companies to “pay their fair share” and set out a series of measures, including an effort to help tax commerce on platforms such as Uber and Airbnb.

“A single ruling is not discouraging our commitment in this sense, I would say on the contrary,” Economy Commissioner Paolo Gentiloni said at a press conference in Brussels.

The Commission’s action plan includes 25 measures to come in the next four years to “harness the potential of data and new technologies, to better fight tax fraud, improve compliance and reduce administrative burdens,” it said in a press statement.

Actions include fighting fraud, simplifying tax administration for businesses and helping EU countries enforce the law by sharing more information.

“The goal is very clear: to make life easier for honest taxpayers and harder for those actively trying to cheat the system,” Executive Vice President Valdis Dombrovskis said at the same news conference.

The need, he added, was “made even more clear by today’s ruling.”

He was referring to Wednesday’s judgment by the EU’s lower tribunal, which annulled the Commission’s 2016 decision ordering Ireland to recover €13 billion from Apple. The Commission had found that Ireland’s tax treatment amounted to illegal state aid, giving the tech giant an advantage over competitors.

“We will study it very carefully and consider next steps,” Dombrovskis said. The decision can be appealed to the Court of Justice....

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