As much as the ruling was bad news for such companies, the decision was positive for taxpayers seeking a dividend offset treatment. The case set an important precedent for US taxpayers with profit split arrangements. The decision was a bad sign for businesses that rely on profit split arrangements to distribute costs efficiently. The Tax Court upheld two tax adjustments that the IRS had issued to increase Coca-Cola’s taxable US income from 2007-2009by more than $9 billion. v Commissioner case was one of the landmark court battles to reach a conclusion in 2020. The soft drinks company has even hired lawyer J Michael Luttig, a former federal judge and former Boeing counsel, to advise it on the case. Ireland’s finance minister said the appeal process “could take up to two years to complete”.Īfter the US Tax Court ruled against it, Coca-Cola is preparing for the next round of battle with the Internal Revenue Service (IRS). However, if Apple does lose, the European Commission will be emboldened to pursue more state aid cases. This perception will continue whether Apple wins or loses the CJEU case. Many US multinational companies that have operated across the EU through similar arrangements as Apple are watching the case because they believe they have been unfairly targeted by the Commission. Irish Finance Minister Paschal Donohue stands firm that “the correct amount of Irish tax was paid, and that Ireland provided no state aid to Apple”.
Neither Apple nor the Irish government are going to concede. For this reason, the Commission is bringing this matter before the European Court of Justice,” said Margrethe Vestager, vice president of the European Commission. “The General Court has made a number of errors of law. By September, the Commission had decided it would be take the case to the CJEU. In the EU, the European Commission’s decision to appeal the Apple case to the Court of Justice of the European Union (CJEU) could set the standard for state aid cases.Īpple won a historic victory against the European Commission in July 2020 at the General Court of the EU (GCEU), but it was unlikely the Commission was going to accept defeat.
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