Dublin (The Brussels Morning Newspaper) – MEP Pasquale Tridico praised the ECJ ruling as historic. He urged EU tax harmonization and advocated for a centralized register to combat financial abuses.
Pasquale Tridico, the head of the 5 Star Movement delegation in the EU Parliament and President of the EU Parliament’s Committee on Fiscal Affairs, reportedly described the European Court of Justice‘s ruling on the tax rulings granted by Ireland to Apple as historic.
How Historic is the ECJ Ruling on Apple’s Tax Case?
The European Court of Justice ruling, which had been eagerly awaited, arrives after years of legal wrangling over whether the EU Commission was right to require in 2016 that €13bn in “illegal” tax breaks for Apple should be compensated because it gave the iPhone maker an unfair advantage.
The ECJ ruled that a lower court victory for Apple should be overturned and supported the commission’s 2016 decision that Ireland had given Apple unlawful aid relating to the tax treatment of profits yielded by Apple’s activities outside the US which Ireland is now directed to recover. In 2020, the general court, a lower court, rejected the commission’s 2016 decision, saying it had not sufficiently demonstrated that Apple’s subsidiaries had relished a selective advantage. That ruling has now been put aside by the ECJ, which has authorised the EU Commission’s 2016 decision.
How Does MEP Tridico Respond to Multinational Tax Evasion?
Pasquale Tridico indicated that the tax advantages given to multinationals are viewed as a form of de facto tax evasion, which is incompatible with the internal market. Tridico also suggested that Italy, among other European countries, suffers significantly from this unfair competition, which diverts crucial resources away from public services such as education, healthcare, poverty alleviation, and support for struggling industrial sectors.
What Does Tridico Expect from the European Commission on Tax Reforms?
He stated that there is now an expectation for the future European Commission to introduce a legislative proposal aimed at banning all forms of tax evasion and competitive advantages for tech giants and large corporations within the European Union. He also highlighted that this dispute underscores the need for enhanced transparency regarding the ownership of capital assets and more effective legislation to tackle the use of shell companies.
Will a Centralized Register Help Curb Financial Crimes in Europe?
Pasquale Tridico remarked that these objectives could be met through the establishment of a centralised European register to collect information on and identify the beneficial owners of trusts, financial assets, and real estate. He emphasised that such a register would bolster efforts against tax abuse, tax evasion, money laundering, terrorist financing, and potential conflicts of interest. Tridico also expressed the expectation that tax harmonization at the European level should be the top priority for Ursula Von der Leyen’s second mandate.
