IRELAND has launched a stinging legal attack on Brussels and accused bureaucrats of interfering with its sovereignty after the European Commission ordered Apple to repay billions in tax.
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Dublin has accused the European Commission of over-stepping its powers when it ruled the tech giant broke rules when it enjoyed a special deal that means it now owes €13billion in back taxes.
The legal challenge argues that Brussels is trying to rewrite Irish tax laws and that Apple's Irish subsidiaries paid all tax that was due.
The EU's competition watchdog found the iPhone maker had paid 0.0005 per cent tax in 2014, in a deal that allowed Apple to funnel its European sales through Ireland.
But Dublin has argued the Commission misunderstood Irish law and had misapplied State Aid law.
The legal challenge argues that Brussels is trying to rewrite Irish tax laws and that Apple's Irish subsidiaries paid all tax that was due.
The EU's competition watchdog found the iPhone maker had paid 0.0005 per cent tax in 2014, in a deal that allowed Apple to funnel its European sales through Ireland.
But Dublin has argued the Commission misunderstood Irish law and had misapplied State Aid law.
GETTYThe watchdog was also accused of failing to act impartially and in accordance with its duty of care.
At the same time the European Commission was accused of failing to provide proper reasons for its decision.
A Department of Finance submission said: "The Commission has exceeded its powers and interfered with national tax sovereignty.
"The Commission has no competence, under State aid rules, unilaterally to substitute its own view of the geographic scope and extent of the member state's tax jurisdiction for those of the member state itself.
"The purpose of the State aid rules is to tackle State interventions which confer a selective advantage.
"The State aid rules by their nature cannot remedy mismatches between tax systems on a global level."
Apple has also hit out at the European Commission over the ruling.
In a statement the company said: "It's been clear since the start of this case there was a pre-determined outcome.
"The Commission took unilateral action and retroactively changed the rules, disregarding decades of Irish tax law, US tax law, as well as global consensus on tax policy, that everyone has relied on.
"If their opinion is allowed to stand, Apple would pay 40 per cent of all the corporate income tax collected in Ireland, which is unprecedented and, far from levelling the playing field, selectively targets Apple.
"This has no basis in fact or law and we're confident the ruling will be overturned."
Ireland has structured its economy around attracting multinationals with its low corporate tax rate, with a number of tech giants now based in Dublin.
The Department of Finance added: "The Commission never clearly explained its State aid theory during the investigation, and the decision contains factual findings on which Ireland never had the chance to comment.
"The Commission breached the duty of good administration by failing to act impartially and in accordance with its duty of care."
http://www.express.co.uk/finance/city/745166/Ireland-EU-Apple-tax-ruling-legal-challenge
