Trump on collision course with Brussels again as White House backs Apple in EU court case
DONALD Trump has set the US on a collision course with Brussels yet again after the White House lodged a formal intervention on behalf of Apple ahead of an upcoming EU court case.
According to US Government sources officials in Washington have actively intervened to help the computer giant’s appeal against a massive £11.5 billion fine imposed by eurocrats.
Last year the EU’s competition commissioner, Margrethe Vestager, ruled that Apple had illegally avoided paying its dues in Europe via a sweetheart tax deal with Ireland.
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Apple is appealing the ordered payment, which is backdated all the way to 2003, and now has a powerful ally for its upcoming hearing in the form of Mr Trump’s administration.
The President’s decision to get the White House intimately involved in the case is bound to provoke yet further friction with Brussels, which already has a less than healthy relationship with Washington.
Former Commander-in-Chief Barack Obama offered veiled criticism of the ruling at the time, but didn’t bring it up with other G20 leaders saying he would not usually intervene on behalf of a specific company.
But according to sources Mr Trump’s administration has now done precisely that, and it is understood officials are backing Apple's case by seeking a prominent role in the appeal.
A source said: “I can confirm that the United States filed an application with the European Union General Court to intervene in the case involving the retroactive application of state aid rules to Apple.”
EU’s competition head defends Apple tax ruling in European Parliament debate
The Trump administration, which has tentatively proposed a tax break on £2 trillion in corporate profits being held offshore as part of its tax reform, has not said anything in public so far about the case.
Apple has claimed that it was a convenient target for the European Union and that the EU competition enforcer used an "absurd theory" in order to come up with a punitive figure.
Last Autumn the EU Commission chief Jean-Claude Juncker insisted “this is not a decision against the United States of America" and said Brussels was simply applying its tax rules.
The case, which will come before judges at the ECJ’s General Court, is expected to be heard late next year, another source with knowledge of the matter said.
Eurocrats have launched a major crackdown on corporate tax avoidance over the last 18 months with Amazon and McDonald's also in the EU crosshairs over their tax deals with Luxembourg.
Ireland, the Netherlands, Luxembourg, Starbucks, Fiat Chrysler Automobiles and several other companies that were also ordered to pay back taxes to other EU countries have similarly challenged their EU rulings.
