CJEU – Recent Developments in Direct Taxation 2019

1. S. 230Introduction

The Apple State aid case is among the most high-profile EU tax law cases, due to the monetary amounts at stake, the prominence of the taxpayer, and the profound legal questions that it raises. Superficially, the case concerns the simple question whether the Irish tax authorities (the “Irish Revenue”) contravened the prohibition of granting selective advantages to an undertaking by accepting the attribution of only a small portion of the worldwide profits booked by two Irish subsidiaries of the US-based Apple group to its Irish branches. Yet, in early discussions among tax lawyers, the case has served as a catalyst for broader questions namely: the legitimacy and limits of the European Commission’s review of Member States’ administration of taxation; national sovereignty in relation to third countries and the definition of tax jurisdiction and the ability to enforce seemingly universal goals such as the avoidance of double non-taxation by means of EU competition law. Ultimately, these discussions are unlikely to end. Whatever the outcome of this particular case – to be concluded by judgment of the European Court of Justice (hereinafter: “CJEU”) expected in 2021 – it w...