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ireland
‘Long-Overdue Justice’: EU Court Rules Ireland Let Apple Avoid $14.4 Billion in Taxes
"This ruling exposes E.U. tax havens' love affair with multinationals."
Sep 10, 2024
The European Union's highest court on Tuesday ruled that Apple must pay €13 billion in back taxes to Ireland, determining that the country gave the company illegal tax benefits in the past, in what campaigners called a victory for tax justice.
The E.U. Court of Justice ruling brought to a close a landmark case that began in 2016 when the European Commission ordered Apple to pay the €13 billion ($14.4 billion) based on an unfair tax arrangement the company had with Ireland from 1991 until 2014. A lower court overturned the commission's order in 2020, but Tuesday's ruling, which is final, restores it.
Observers viewed the case as among the most important brought by E.U. Competition Commissioner Margrethe Vestager, an antitrust official who's been in office since 2014.
"It's important to show European taxpayers that once in a while, tax justice can be done," Vestager, who leaves office in two weeks, said following Tuesday's ruling.
Chiara Putaturo, a tax policy adviser at Oxfam EU, said in a statement that "this ruling exposes E.U. tax havens' love affair with multinationals. It delivers long-overdue justice after over a decade of Ireland standing by and allowing Apple to dodge taxes."
Today is a huge win for European citizens and tax justice.
👉In its final judgment, @EUCourtPress confirms @EU_Commission 2016 decision: Ireland granted illegal aid to @Apple.
Ireland now has to release up to 13 billion euros of unpaid taxes.
— Margrethe Vestager (@vestager) September 10, 2024
The European Commission argued that the selective tax benefits that Ireland had offered to two Apple subsidiaries amounted to illegal state aid that hindered competition. The company's tax burden in Ireland, where its European operations have been based since 1980, was as low as 0.005% of its profits in 2014.
In November of last year, Giovanni Pitruzzella, the advocate general of the E.U. Court of Justice, issued an opinion in favor of the commission's position and against the lower court ruling, in a setback for the tech giant. The high court, which is based in Luxembourg, generally agrees with its advocate general following such recommendations, as it ultimately did on Tuesday.
The €13 billion, plus interest, has been held in an escrow account since 2018 and will be released to Ireland, even though the country fought against the commission's order. Ireland said it would respect the court ruling.
Ireland is often characterized a tax haven within the E.U. and hosts the European headquarters for many multinational firms, with critics charging that its tax system drives up inequality.
Tax justice campaigners said Tuesday's ruling should just be a start and that more fundamental reforms are needed at the international and E.U. level.
"Our tax problem is more than just one rotten apple," Tove Maria Ryding, a policy manager at the European Network on Debt and Development, said in a statement.
"The international system for taxing multinational corporations continues to be deeply complex, unpredictable and unfair," she added, arguing that a company's economic activity across many countries, including in the Global South, shouldn't mean tax revenues only for one country such as Ireland.
Ryding praised the United Nations' efforts to establish a global tax convention, calling the proposal a "beacon of hope for a fairer future."
Putaturo of Oxfam likewise called for a fairer tax system in Europe.
"While this ruling will force the tech giant to pay its debt, the root of the issue is far from solved," she said. "E.U. tax havens can still make sweetheart tax deals with big multinationals. The duty to stop this rests on the shoulders of E.U. policymakers. Yet, they have turned a blind eye to tax havens within their borders and the harmful race to the bottom that countries like Ireland are instigating."
Oxfam EU also called for the closing of tax loopholes and the establishment of a wealth tax.
The Apple case was not the only victory for Vestager, the antitrust chief, on Tuesday: The E.U. Court of Justice also ruled that Google had illegally used its search engine dominance to favor its own shopping service, fining the company €2.4 billion ($2.65 billion).
Bloomberg on Tuesday called it a "double boost to the European Union’s crackdown on Big Tech," and said that Vestager's past work had "paved the way" for the U.S. and the U.K. to take action against Google.
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EU's Top Diplomat Seeks Sanctions on Israeli Leaders for 'Incitement to Commit War Crimes'
While welcoming the move, one Amnesty International campaigner asserted that "the E.U.'s call for a cease-fire and curbing settler violence rings hollow until it takes concrete action."
Aug 29, 2024
European Union foreign affairs chief Josep Borrell said Thursday that he has recommended sanctioning Israeli leaders for hate speech and inciting war crimes in Gaza and the illegally occupied West Bank.
Borrell said during a meeting of E.U. foreign ministers in Brussels that he has asked member states if they support imposing sanctions on some Israeli Cabinet ministers who have disseminated "unacceptable hate messages against the Palestinians" and have proposed "things that clearly go against international law" and amount to "an incitement to war crimes."
Israeli ministers should be sanctioned by EU for inciting hate and war crimes against Palestinians, says @JosepBorrellF. #Gaza #WestBank #Israel pic.twitter.com/9N0oz0tdCX
— Georg von Harrach (@georgvh) August 29, 2024
At least one E.U. member said it supports Borrell's recommendation.
"This is a war against Palestinians, not just against Hamas. The level of civilian casualties and dead is unconscionable," Irish Foreign Minister Micheál Martin said Thursday in Brussels. "It's a war on the population. No point in trying to fudge this."
"It cannot be business as usual," Martin added. "It is very clear to us that international humanitarian law has been broken."
Earlier this year, the Irish Senate voted to impose sanctions on Israel, prohibit the transfer of U.S. weapons to Israel via Ireland, and push for an international arms embargo against the country.
While E.U. nations such as Ireland, Spain, Norway, and Slovenia have been outspoken critics of Israel's Gaza onslaught and have responded with moves including recognizing Palestinian statehood, other members of the bloc—notably Germany and France—have been staunch supporters of Israel, even as its forces have killed and wounded more than 144,000 Gazans and displaced, starved, or sickened millions more.
Israeli Foreign Minister Israel Katz has threatened "severe consequences" for European nations that recognize Palestinian statehood.
Like the United States—Israel's biggest international backer—the E.U. has imposed sanctions on a handful of far-right Israeli individuals and groups, including extremist settler colonists who incited deadly West Bank pogroms and an organization whose members have blocked humanitarian aid shipments from entering Gaza.
While Borrell did not publicly identify specific Israeli ministers he believes should be sanctioned, he has recently condemned the words and actions of far-right figures including National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich.
Ben-Gvir was widely condemned for defending Israeli soldiers accused of gang-raping a Palestinian man detained at the notorious Sde Teiman prison and for taking part in a highly controversial visit to Islam's third-holiest site, the al-Aqsa mosque compound—which is located on what Jews call the Temple Mount, Judaism's most sacred site. Ben-Gvir infuriated Muslims and other critics by declaring he wanted to "put an Israeli flag" and build a synagogue there.
Smotrich, who has also defended the alleged Sde Teiman rapists as "heroic warriors," has drawn condemnation for promoting new and expanded Israeli settler colonies in the West Bank, a policy he attributed partly to increasing international recognition of Palestinian statehood and the International Court of Justice's (ICJ) recent ruling affirming that Israel's 57-year occupation is a form of apartheid and illegal.
Statements by Ben-Gvir and Smotrich—who recently asserted that it may be "justified and moral" to starve 2 million Palestinians to death—have been entered as evidence in the South African-led ICJ genocide case concerning Israel's war on Gaza.
Borrell has mentioned some of the ministers' words and actions in previous calls for accountability for those who incite hate and violence.
"While the world pushes for a cease-fire in Gaza, Minister Ben-Gvir calls for cutting fuel and aid to civilians," he said on social media earlier this month. "Like Minister Smotrich's sinister statements, this is an incitement to war crimes."
"Sanctions must be on our E.U. agenda," Borrell added.
While human rights defenders welcomed Borrell's sanctions recommendations, some groups urged him to go even further.
"The [ICJ's] findings clearly point to violations of international law committed by Israel and to the obligations of third states not to legitimize or provide any assistance to Israel's illegal conduct," Eve Geddie, director of Amnesty International's European Institutions Office, said on Thursday.
Geddie continued:
E.U. members states' supply of arms and equipment as well as their trade and investment with illegal Israeli settlements are enabling Israel's violations of international law and are contrary to their obligations under international law. There can be no business as usual with a state maintaining a brutal, unlawful occupation and perpetrating serious violations of international law, including war crimes and crimes against humanity, on a mass scale.
The relentless bombardment of Gaza amid a clear risk of genocide, the deadly spike in state-backed settler violence, and the latest military offensive in the West Bank are all byproducts of Israel's unlawful occupation and decades of impunity enabled by E.U. inaction.
"The E.U.'s call for a cease-fire and curbing settler violence rings hollow until it takes concrete actions—an immediate arms embargo, a ban on trade with Israeli settlements, and support for action at the U.N. to bring an end to Israel's unlawful occupation of the occupied Palestinian territory," Geddie added.
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Investigation Exposes How Etsy Profits From Israeli Apartheid
"Etsy isn't simply turning a blind eye to stores listed on its site operating in illegal Israeli settlements—it is directly profiting from and even in certain cases, promoting them," said one campaigner.
Aug 07, 2024
Etsy, the popular U.S.-based e-commerce website, is profiting from goods made and sold in Israel's illegal settler colonies in the occupied West Bank, a report published Wednesday revealed.
"Under the radar, Etsy—the popular online platform for selling and buying artisanal and vintage items, with a mission to 'keep commerce human'—has been profiting from businesses with shops in illegal Israeli settlements in the occupied Palestinian territory (OPT)," states the briefing, which was published by the Institute for Journalism and Social Change (IJSC), Global Justice Now, and War on Want.
"It's time to bring an end to this shameless corporate profiteering."
"This briefing reveals, for the first time, how Etsy hosts numerous shops that explicitly name as their locations places that are considered illegal Israeli settlements by the [United Nations] and under international law—and as recently confirmed by the International Court of Justice (ICJ), in its ruling in July," the publication continues.
The ICJ's nonbinding advisory opinion affirmed that "the policies and practices of Israel in the OPT amount to apartheid."
Report author Claire Provost said that "Western complicity in Israeli war crimes is so pervasive that even Etsy, the popular platform for 'feel-good' shopping, is connected to businesses in the settlements."
"So far these ties have gone under the radar and unchallenged," added Provost, IJSC's co-founder and co-director. "That, at least, ends now."
Global Justice Now director Nick Dearden said that "Etsy isn't simply turning a blind eye to stores listed on its site operating in illegal Israeli settlements—it is directly profiting from and even in certain cases, promoting them."
"Doing so risks complicity in war crimes—and the reality is, they're not the only company profiting from the human misery inflicted on Palestinians day in, day out," he added. "It's time to bring an end to this shameless corporate profiteering."
Etsy charges listing and transaction fees. It also offers seller advertising for an additional fee. "Star sellers" are highlighted to prospective buyers. At least four star sellers—including one that had over 12,000 sales as of late July—specifically list illegal Israeli settlements as their locations.
The report identifies 14 Etsy stores located in the Ariel settlement, nine in Maale Adumim, and four in Tekoa.
"The full amount of money that has gone to businesses in the settlements, and Etsy in the process, is hard to estimate," the report acknowledges. Etsy "also hosts many more shops that only say they are based in 'Israel,' without specifying particular locations, making it hard or impossible for consumers to tell if they are also in such settlements."
"This trade has a significant Irish connection, too—which will alarm many in that country, where there are growing calls to cut ties with settlement businesses," the publication continues. "Etsy's contracts with these shops in settlements appear to be done through the company's Irish subsidiary, Etsy Ireland U.C., which is headquartered in Dublin."
Amid "Israeli efforts to expand their illegal settlements in the West Bank and increasing settler violence against Palestinians," some "consumers of conscience may have bought unknowingly from Etsy shops in these illegal settlements," the report adds. "Etsy may not have been questioned about these business links before."
"These problems, at least, can end now," the paper states. "We now know that Etsy is another company that is profiting from business relationships with the illegal settlements. By facilitating the sale of products from shops located in these settlements, Etsy could be connected to war crimes—and this could, in turn, be making users of the platform around the world, as well as Ireland (as the location of Etsy's subsidiary contracting with settlement shops), unknowingly involved too."
"These business relationships look like a serious problem for Etsy. But Etsy also has an opportunity to respond to these revelations, and concerns about them," the report argues. "It could act on its ability, as written into its policies, to cut its ties with shops in illegal settlements."
"It could also require that all shops disclose their location (city/town and not just country)," the authors added. "In doing
so, it could show real leadership to many already or potentially loyal users: people who want to make 'feel good,' conscious and more ethical purchases online."
In 2019, the Court of Justice of the European Union ruled that food products made in Israeli settlements must indicate that they originate from a settlement instead of being labeled "Product of Israel."
The following year in the United States, the administration of then-President Donald Trumpordered goods produced in much of the occupied West Bank to be labeled "Made in Israel."
The global Boycott, Divestment, and Sanctions movement has notched a string of successes in its campaign to educate and influence consumers to eschew Israeli settlement products.
Responding to a query from Provost, Etsy said that "we have shared this information internally with the appropriate teams for review."
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